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padib said:

Nintendo does not directly compete with anyone in the home console race. XB is competing with PS. Nintendo is not in that arms race.

Their games have litterally no strong competition on those platforms. For example, the strongest competition to Mario is Little Big Planet. It honestly pales in comparison to the sales of the Mario line on the Wii.

PosGamePlatformYearGenrePublisherNorth AmericaEuropeJapanRest of WorldGlobal
1 LittleBigPlanet PS3 2008 Platform Sony Computer Entertainment 2.69 1.77 0.17 0.81 5.44
2 LittleBigPlanet 2 PS3 2011 Platform Sony Computer Entertainment 1.70 0.96 0.06 0.40 3.12
5 LittleBigPlanet Karting PS3 2012 Action Sony Computer Entertainment 0.31 0.24 0.01 0.08 0.64
Total4.72.970.241.299.2
PosGamePlatformYearGenrePublisherNorth AmericaEuropeJapanRest of WorldGlobal
1 New Super Mario Bros. Wii Wii 2009 Platform Nintendo 13.92 6.62 4.69 2.16 27.39
2 Super Mario Galaxy Wii 2007 Platform Nintendo 5.92 3.23 1.20 0.72 11.07
3 Super Mario Galaxy 2 Wii 2010 Platform Nintendo 3.46 2.17 0.98 0.60 7.22
4 Super Paper Mario Wii 2007 Platform Nintendo 1.93 0.82 0.59 0.31 3.64
5 Super Mario All-Stars: Limited Edition Wii 2010 Platform Nintendo 0.98 0.51 0.92 0.13 2.54
Total26.2113.358.383.9151.85

There are more example: Modnation racers versus Mario Kart. Zelda versus what? Pokemon versus what?

Maybe at best Sony competes with Nintendo's new line of JRPGs.

As for 3rd party multiplats, look at the Wii. It did great without 3rd party multiplats, and 3rd party multi plats never sold well on it, unless it was a party game.

I think you've missed my point.

Nintendo vs Sony's 1st party is irrelevant, since Sony aren't trying to sell their console purely on their own merits. 3rd parties make up the vast majority of home console software sales, which is proof enough that the majority of the core market care more for 3rd party games than they do the 1st party titles of any of the big three.

For someone to enjoy the WiiU they have to enjoy Nintendo games. For someone to enjoy their competitors there is no such restriction.

With the "casuals" gone, Nintendo either need to start appealing to the core market again by providing a competitive online experience and the same 3rd party support as their competitors, or continue to watch the WiiU burn.