He's exactly right. Look at a title on Wii called "Little King's Story". Read reviews on it, everyone gives it a 9/10 if not better. Everyone that plays it rants and raves about how good it is.

Yet that didn't translate into sales and it will probably go without a sequel. It's a shame because everyone that plays it wants a sequel, yet there are no sales to justify it. It's better in every way, shape, and form than Pikmin (a similar 1st party Nintendo game) but yet Pikmin got a sequel and may even have a 3rd incarnation on the Wii.

Look at the post above which lists plenty of good games. But how many of those games were profitable? None. Companies don't really care about how good the game is, they care about how many games it sells. Every publisher would rather make the next CoD that sells millions of copies rather than some sleeper hit that gets 9/10 stars and sells a hundred thousand.