You said 1 title which surpassed 2 million:
I am sorry I should have said franchise. Only the just dance surpassed 2 million. One sitting at 4.3 the other sitting at 5.
And I'd say 20 isn't "not many". Maybe when compared to all of the third party titles released overall, but that's an absurd metric which would come up with the same issues when comparing it on Sony or MS's platforms too.
No it is not, because it is respective of console base. For example if the Dreamcast or the Wii U. Had that many titles that were million sellers that would be impressive. For the two consoles that sold more than the Wii we can contrast clearly. The PS1 had 110 titles that sold over a million and the PS2 had over 153. This is a very strong point as I will elaborate more because it includes a response for below.....
I think it's actually closer to 55% to be honest but I can't find that chart right now. But the point isn't that many games sold very highly, it's that many publishers were very profitable. They were churning out extremely low budget titles that sold probably upwards of 300k like you said, which gave them very nice profits. Ubisoft explicitly said they used the profits from these "casual games" to fund HD games on the 360 and PS3-
http://www.neogaf.com/forum/showthread.php?t=184305
The claim that third parties in general weren't profitable on the Wii is complete bunk.
EDIT:
Honestly I don't know how this topic came up or if it's all that relevant to Capcom's current situation, but I think it's often worth correcting this myth that third party games didn't sell/weren't profitable on the Wii.
The thing is that the sales numbers are low. They DON'T sell, the numbers prove it. Just because the pubs anticipated and planned for this doesn't change the reality. This is important because the low sales number has been a historical issue for Nintendo consoles. Now the Wii was a standard def console, which main appeal was the inputs and not the graphics or depth of games. Because of that, it places the development of those games in a different price bracket, something more resembling PS2 era. What that means is that they can make more of a profit off of the sales numbers. The PS3/360 and the current gen consoles are again more expensive. Asking third parties, especially those who have seen the sales average of 300k to invest in bringing or porting a large budget or AAA title over, is going to give them pause. If anticipating the lower unit sales, the cost of porting should be low and easy until they feel confident the switch will bring them decent numbers. And again when I pointed out performance I didn't state profits, I talked about unit sales. Which expectation of profits have grown each gen.
The third parties are reactionary, they will try to make a profit the best way they can but if you think they were throwing AAA money at Wii titles, or that the numbers should somehow ease their apprehension, I am unsure how you are interpreting what these numbers mean.
EDIT: Just to be clear here, if third parties can port without issue I can easily see more MP titles. The switch is closer to the competition but the specs don't line up exactly, which means either devs have to do the work, or they create a method/engine that gets it down to a science.
