This is my theory on this -- kids view cartoony games as something that belong on their smartphone now. You look at most of the popular smartphone/tablet games and they're things like Angry Birds and Plants Vs. Zombies and Cut the Rope ... bright, colorful games.
But on home consoles, since they're getting their fix of cartoony games on their tablets ... they are migrating more towards the more high-end visual games like COD, GTA, Last of Us, etc. (stuff they probably shouldn't be playing but gravitate to because it's what their older brother/cousin is playing).
As a result games that are "in the middle" like Puppeteer, Wonderful 101, Little Big Planet Racing, Rayman, etc. are finding there's little to no market for them anymore.
Nintendo's big gun family IP like Mario/Pokemon/DKC are still safe as are the top licensed cartoony games like LEGO and some Disney stuff, but everyone else is basically screwed.
Kids are changing are a bit I think.
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