Small Fish in a Big (Blue) Ocean
In February of 2006, former Nintendo of America marketing vice president Perrin Kaplan laid out Nintendo's forthcoming console generation with a strategy the company had dubbed "blue ocean." The blue ocean strategy, according to Nintendo, was an effort to create a gaming market where there previously wasn't one, with new methods, new approaches, and new platforms. This plan, which seemed so simple and almost laughable initially, has gone on to generate the company a ridiculous amount of profit, and the various aspects of that strategy continue to unfold before us.
WiiWare is the next part of that strategy, and it expands Nintendo's footprint in the downloadable content space. The Virtual Console, Nintendo's initial platform for downloadable content on the Wii, has been one of the more attractive aspects of console; the ability to download old classics from a library of a large library of games across many once-competing consoles is a big selling point for hardcore, old-school gamers, and it has made Virtual Console a a financial success.
The one readily-identifiable deficiency of the Virtual Console platform is that it doesn't match its competitors—the Xbox Live Arcade and the PlayStation Network—when it comes to unique content. You just wouldn't find that new indie classic or fantastic revitalization of an old favorite on the Wii; at least, not until now.

With WiiWare, Nintendo finally has a digital distribution platform for new games.
The downloadable content front of the console wars has changed with WiiWare, Nintendo's platform for fresh, downloadable games on the Wii. The titles available through WiiWare aren't just repackaged ROMs sold for top dollar, but new games built from the ground up for the Wii or ported to use motion-control.
Originally announced in late June of 2007, WiiWare was designed to be as friendly to independent and smaller developers as possible. Nintendo has opted to take a hands-off approach: although the company sets prices and has a certification process similar to Microsoft's, developers are free to release what they like so long as the title conforms to ratings limits; AO titles aren't welcome, but everything else is fair game.