Why does the Nintendo Wii have last-generation graphics?
Because sales would have been far, far lower and costs would have been far, far higher. With their current system, developing costs (both for the console itself and the games that third parties publish) are kept lower. Because of this, the console itself was introduced at a far, far lower price than any other current generation console. So saving hundreds of dollars, coupled with a family-friendly arsenal of games and unique motion control, meant a huge number of sales. In short: they made a hell of a lot more money this way than if they were more concerned about HD graphics.
