The problem was they made the Wii HW BC with GC. Basically by doing no work on the hardware design. Either they'd have had to create a new Flipper that was BC, or they'd have had to go through the effort of creating an emulator on a new architecture. A new architecture mid-cycle would have been bonkers, at the cost of a new console with none of the new-gen benefits.
What I find hilarious is that they basically castrated one of their best selling consoles hardware to offer BC to one of their worst. They neglected suppprting BC for the decade-long market leader NES on the SNES, and again neglected their next market leader SNES BC for it's successor, and so on. But the GameCube, their most mediocre console till then (market wise) was the one they felt "oh, we gotta make sure our next machine plays all its games". Historical hindsight is fun.
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