The truth is as great as Nintendo is, buying an entire hardware platform for primarily the software of one company doesn't fly to the mass market.
It's not just Nintendo, I wouldn't buy a $350 console just to play Capcom games or Square-Enix games or EA games tied to mediocre third party support.
Ever since the SNES, Nintendo has put themselves behind the 8 ball with each of their consoles by not securing proper developer support.
That's all there is to it.
The only difference with the Wii was the Wiimote created the perfect miracle combination of "get up off the couch" casual gaming, but that has run its course and isn't unique anymore, and that audience are now getting the limited gaming fix they need in their life from tablets/phones at a price Nintendo can't compete with ($50 for one game or $1 for 5-6 games?).
Nintendo is fighting the good fight, but they have to travel uphill every time by having to carry the entire load of a console on their shoulders. Sony/MS have it easy, they get all the developer support and can chime in with 2-3 good 1st/2nd party exclusives a year (and MS hasn't even bothered to meet that criteria the last few years, lol, but no prob, they still get Call of Duty, Bioshock, Madden NFL, GTAV, etc.).
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