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They've done okay-ish. I think the real problem is the outsourced niche games that're just sent to die with little to no promotion (ie: Disaster, Elite Beat Agents, ASH, etc), but that's really nothing new for Nintendo.

Big wins for Nintendo this gen though include Nintendogs, Wii ____, Touch Generations (Brain-Age, Clubhouse Games, Personal Trainer, etc), Friend Connection, Rhythm Heaven, Style Savvy, Endless Ocean and (although a 3rd party IP) Professor Layton. Animal Crossing hit the bigtime this gen too, even though it's an older IP.