In the hands of a competent company, Xenoblade is an easy sell. It won't be a million seller, but it would be worth localizing. It's an appealing game on a console devoid of competition - Nintendo or otherwise. It isn't going to make much difference to their bottom line one way or the other, but it's a goodwill move after an outpouring of support for the game. Most companies would play off that, but well, it's Nintendo. Maybe they have Wii Babies planned instead.
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Simplicity is the ultimate sophistication.