Pokemon is partially the baby of Gamefreak and the idea of making a RPG on the limited portable system. Over time as the portables have increased power, they have been drawn forward but at the time of its release much like Dragon Quest before the Square Enix merger, they've kept it simple and true to the core concept that got them the fans they have had today.
In doing so, it probably has taken the teams a while to get used to the new technology although thanks to the Pokemon generation cycle they are probably in good position in time for Pokemon X and Y.
But the fact is more so with the current generation, portables are the gods of Japanese gaming, console gaming isn't where the focus would go to especially after the last few attempts.
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