If gaming doesn't increases its market it will just implode, small studios would had no chance whatsoever and we would be facing another crash. (I'm almost sure that without the wii we would be in the middle of one right about now, at least in Japan).
For proof of this, mantidor and others, it is necessary to do a little thought exercise. First, take the combined sales of all the consoles this generation up to this point. It's been about 124 weeks since the launch of the Xbox 360 which is, I suppose, the start of this current gen. There have been 59 million consoles sold, a majority by the Wii, which was launched launched in the 2nd year.
At this point I'd like to direct your attention to the similar stats from last gen. The combined totals for this point last gen are 55-56 million, a majority by the PS2, and not including the Dreamcast. I mean wow look, games have expanded by 3-4 million! But wait! Since the Wii serves "another market" and is full of "new people" like "girls and grandmas" and "casual gamers" so all of the Wii numbers have to be excised. So let's take 27 million away from 59 million and holy cow. The combined total for the industry becomes 32 million, a 43% decrease from the previous generation.
This data presents an interesting set of logical mazes. If, on the one hand, the Wii is solely populated by new people, then Nintendo has quite possibly staved off another videogame crash. With Sony and Microsoft losing $5.5 billion combined and a 43% decrease, this indsutry would have died a high-definition death. However, if one argues that the Wii has little effect and the wii owners would have bought the 360 and PS3 instead, then that is certainly a hell of a lot of gamers
choosing the Wii over the other two.
There is also the argument that these are all Nintendo fans who bought the Wii, and let me tell ya... the idea of Nintendo fanboys being the majority audience after being characterized a tiny niche last generation is certainly pleasing to hear, but probably not the truth, considering the Wii has already sold more than the GC.
The Wii-denying talking points are fading away one by one and third parties, blogs, websites, and fanboys are running out of things to say. The only thing left is "doesn't have HD" and that's something everybody already knows.