Ramping up game production doesn't really make sense for Nintendo unless they are guaranteed success in future generations , Nintendo is a conservative company and won't take huge risks for the sake of bigger long term profits ala Blu Ray PS3 , Sony aqquired the most development resources during the PS1 & PS2 era but now they've had to cut back production in some places and divert resources to more casual projects , sold off assets etc.
People don't seem to understand that Nintendo can't guarantee they'll win Next gen and even if they make a killing next next the generation , generations after will be entirely new ball games!. The gaming markets rapidly change every 8 or so years and staying ahead in such a dynamic industry is near enough impossible . The PS1 and PS2 did little for the PS3 just as the DS & Wii may not do much for future Nintendo consoles , no one forsaw the PS3's faliures but are generaly more open minded now with the Wii's is succesful.
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