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SImply put, they have been innovating in the software department less and less every generation.  Here is a list of great new IP's or at least massive series overhauls that have come out every generation.  I am not going to count predictable upgrades like BF3 -> BF4 situations.   I am talking about big overhauls like GTAIII -> GTA V:

 

N64 (8):

-Super Mario 64

-Mario Party 

-Paper Mario (I know there was an RPG before, but don't act like it wasn't a massive change)

-Golden Eye

-Zelda: Ocarina of Time

-Super Smash Bros

-Star Fox 64 (Debatible if new)

-Pokemon Stadium

 

Gamecube (5):

-Animal Crossing

-Harvest Moon

-Pikmin

-Super Mario Sunshine

-Resident Evil 4 (I know it was a timed exclusive)

Wii (5):

-Wii Sports

-Wii Fitness

-Super Mario Galaxy

-Skyword Sword (Debatible)

-New Super Mario Bros (Debatible)

Wii U (?):  

-?

 

Keep in mind I am listing "New" things, and not sequels.  As you can see Nintendo has basically stopped trying and as such nobody sees anything new.  A few more things: 

1) Even though the N64 didn't do amazing, it did WAY better than the gamecube marketshare wise.  

2)  The Wii sold well because its Wii sports and fitness games were something you couldn't get anywhere else that were never made before.  They were SO NEW that it only took a couple to sell like crazy.

3) Before you point fingures at playstation and xbox; keep in mind that I never said they needed new experiences as badly because they have third part support.  Also the PS3 introduced so many new IP's that I would need a new thread to talk about it, and Xbox had many of its own as well.  In fact TitanFall, The Order, and The Division ar already making nex gen usher in brand new experiences.  Ones you can't get on the Wii U.