"[Nintendo was] getting their ass handed to them [last generation], trying to compete with hardcore gamers. So they said, 'We're not going to bother, we're going to find our niche audience.'" says Wanat. "[Nintendo] has succeeded overwhelmingly so. But do not expect the rest of the industry to get down on its knees and 'blow' Nintendo to make games for that system when you can no longer use it and the same porting mechanism [when creating multiplatform SKUs on Xbox 360, PS3 and PC]."
Now Nintendo fans, before you feverishly type a retort, Wanat wants to make it clear that the Wii is home to some "unbelievable experiences" (specifically calling Nintendo's first-party titles, "Awesome"). However, as a third-party developer, "cracking the code" and finding success on the platform doesn't allow a game to be ported to other systems without completely changing the game's unique features, like gesture-based controls. "You're really getting narrowed to that one, narrow market. And what sells there? Nintendo games." It seems Sega is already feeling that sting.
[Via Sega Nerds]
The Nintendo conversation begins around the 10 minute mark