Wii Sports had to be there to appeal to the non-gamer, but the game begs to be played mutliplayer and hence practically requires a second controller. Selling the controller separately and charging $40 pushes non-gamers away. My mom is a non-gamer (though she plays a mean game of Tetris). There's no way in hell she'd spend $40 on a controller for herself. I think that's the biggest problem with the console package and Nintendo's philosophy. When they announced the name, they had that video of the i's playing together and representing controllers. Then they released picture after picture of people playing Wii Sports together. Now after all is said and done, they're releasing the console with one controller.
My problem with Nintendo making money on consoles is that they make most of their money on software and licensing fees. If Nintendo released Wii with 2 controllers thoughout its life, they could:
1. Sell more consoles.
2. Reach non-gamers with greater ease.
3. Sell more software across the board, 1st and 3rd, thus making Nintendo even more money by way of licensing fees and proprietary Wii discs/kits as well as profits of their own titles.
$249.99 is a decent price, but when you think about what they could've done at that price, it doesn't really make sense.