Microsoft in general. Gamepass is a great service, but aside from that, they dropped the ball this whole generation. First party output has been really poor. Not a developer exactly, but w/e.
Nintendo depending on what you consider "this generation". If you mean the Wii U, then obviously they deserve a spot. It was a case where the software and hardware team apparently couldn't get together and figure out what the fuck they were doing. After Nintendo Land, no games came out that really made use of the Wii U Gamepad. Which may be because the gamepad sucked, or may be because the developers sucked at utilizing it. Chicken and egg.
But the biggest problem with the Wii U IMO was that it just didn't have good games. They decided to release the sequel to arguably their biggest franchise, Wii Sports, as 5 separate initially digital only games, with nothing added but online play. Wii Fit was a digital first release that for some strange reason added little new content while taking away old content. As for Nintendo's core releases they were the definition of playing it safe. Mario 3D World, DKTF, NSMBU. All good games but nothing that would be fresh enough to create a buzz that would get people talking about the Wii U.
Of course, if you mean the Switch as this generation, they're killing it. They came out of the gate with something new and exciting (obviously Zelda and not 1-2 Switch) and really frontloaded the launch. Whereas the Wii U got its best games relatively late, Switch had them up front, and a good impression is important.
I mentioned Nintendo as a whole, but Hal Labaratory gets a special shoutout. So far on the Switch they've released Kirby Star Allies which is just ok, and some mildly entertaining spin offs and small games. The Wii and 3DS were pretty good times for Kirby, but none of his games have really been exciting for a while.
Bioware is an obvious candidtate. Mass Effect 3 was so good up to the last 5 minutes but just couldn't stick the landing. They went with the strategy of trying to have a sequel that replaces all of the characters from the original franchise, and that pretty much never works. It didn't help that the game was obviously rushed out, and was extremely lacking in TLC. Like many other companies chasing the latest trend, they found out that loot based GAAS models aren't a license to print money. I'm hoping they can manage a comeback by returning to the Milky Way Mass Effect, but I'm skeptical.
Rocksteady Studios. Aside from the VR title, they've only released one game in the last generation, and I really did not enjoy it. The Batmobile could have been a fun thing to add a bit of variety but jamming it into every nook and cranny of the game was not the way to go.
Irrational Games. The developer doesn't really exist anymore... so it doesn't get much worse than that does it? They didn't release anything since Infinite. We'll see if their rebranded company ever does anything of note.
Retro Studios. They've released one game in a decade. And it was pretty good, but still.
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