The main root cause since the SNES period for Nintendo and home consoles have been their hardware choices.
Had the N64 been a CD based system, it would have had a double the developer support it wound up getting.
Had the GC not used the smaller mini disk based medium, then it would have gotten more ports like the Xbox and PS2 shared without developers having to compress, cut our or use multiple disks for things they managed to fit on DVDs that powered the other systems.
The Wii being underpowered and featuring motion controls drove a lot of developers away from even trying it, when they had prepped to move their tools onto the latests development tools and game engines.
The Wii U honestly seems to have just inherited all the same bad will, with the added detriments that Nintendo really doesn't appear to have prepped for it themselves and it isn't as easy to port due to its internal architecture. Developers run into a road block and because the publishers are used to making money without support Nintendo hardware or just getting roasted in comparison, they throw out claims of it being more inferior then it really is.
A lot of self inflicted wounds are the reason, Nintendo is having problems with 3rd party support. They still have few loyal friends but with the handheld market being most profitable in Japan where things are shrinking in general and the Wii U suffering a horrible launch, time will tell how loyal they remain. The idea of Nintendo launching another system within 2 or 3 years is looking more and more probable due to their failures stumbling out of the gate.
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