Some companies are making money. Some are losing money. Its not that companies are not trying. Its more of a combination of bad investments and poor planning.
Some companies went into this gen not understanding what they were getting into and as a result, invested in everything, from the HD consoles to the Wii and the DS. EA is a famous example of this, but investing in everything means that some ideas are going to fail. And in the case of EA, they had a large number of lower quality games on all the platforms that didn't sell well, meaning the majority of their games fizzled.
Other developers just put all their eggs into one basket (like just the 360 or just the DS) and some made off like bandits and others lost millions.
As it stands right now, companies are all trying to bet on different horses. Some companies are trying to spread out and work on all the systems, while others are focusing on just one or two. Either way, this gen has been a craps shoot and many have had troubles mostly because of their own mis-management and thinking one console would 'overtake' all the others like PS2 did last gen.
Six upcoming games you should look into:
