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The problem is partially Nintendos fault and it can have many factors:

- Kiddy image: Microsofts statement that gamers grow up with Nintendo but will graduate to other consoles.
- Not being worried about western means of what makes a game next gen like powerful processors. Being behind hinders third parties in the west from wanting to make games for them on par with the competition.
- The advent of Xbox Live and the Playstation network for the competitive gamer.
- The third party drought that has been going onfor twenty years since the Playstation first arrived. Half the reason the N64 & Gamecube didnt sell that well.
- Nintendo has given up on going head to head with the competition, so they go around them. Even this gen, thats what they are doing.
- Nintendo wont drop the family image they hold onto. Nintendo is a traditionally family company and those who buy their product need to be realistic and realize that. They let the third parties and former second parties do the dirty games for them.
- They refuse to share the playing field with their gamers whom have grown up. No relatable first party for older players. If they want to get that, they have to go to third party. Where as with Sony you get both kiddy, teen and mature characters all in one breath. They refuse to grow up with the older gamers who grew with them. 


Nintendo holds a place in all of our hearts, but the problem with Nintendo is an internal one. They chose not to pander to the casuals and for that they will sell half of what the Wii Sold. They need to learn how to satisfy both markets from the start.