Speaking to MCV, No More Heroes director Suda 51 said that in the earliest stages of planning, his game was going to be made for the Xbox 360. It was his producer at Marvelous Interactive, Yasuhiro Wada, who suggested the Wii instead. "Originally, I'd wanted to make this game for Xbox 360, actually. Wada-san had information about the new Wii and how the new controller would work before it came out, so that's why he thought I should produce the game on that format."
It's important to remember that back then Suda wouldn't have known about the controller, or really much of anything about the Wii, while the 360 was a known quantity. A very small quantity in Japan, but still something that could be developed for. Of course, once Suda found out about the Wiimote (and, though he doesn't say it, the smaller cost of game development on the Wii) he was on board. Really, though, if No More Heroes tanked in Japan on the Wii, a system that people have, imagine the 360 sales.
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