Where is the evidence their fanbase is shrinking??

PS2 158m + Xbox 24m = 182m

PS360 = 160m (but will be 190m - 200m)

"The resolution war" will blow over, and all those devs will strive for amazing looking games and it won't break the bank because those devs have had coming up to a decades practice.

Sony and Microsoft are not one and the same.

PS2 gained another 50M units after the PS3 released. The PS3 early on struggled because of this. 158M to 80M is not a drop? Okay what ever you say I guess...

 Xbox 360 gained significant gains over its predecessor but I added them into the equation because they prolonged the 7th generation far too long. 360 made most of it current HW sales aping the Wii fanbase. Those late adopters aren't just going to be potential customers (if what they say about the Wii U is true).The price tag is also a factor.The Xbone will suffer because of this.

DELAYS DELAYS DELAYS

Get used to that word this generation because you're going to hear it alot.

As for those development costs, here is what a 1st party Sony developer had to say on the subject:

http://www.escapistmagazine.com/forums/read/7.830530-Killzone-Dev-Says-PS4-A-Lot-More-Demanding

Resolutiongate was nothing compared to what 2014 and beyond will bring. So much salt will flow.

The Resolution War will never end. NEVER!

2a2a. 
I've pointed out 3 incorrections from your statement and I'm pretty sure about them. What have I misunderstood? Or is it just a way for you to withdraw from your own arguments without causing the impression you were wrong about them?

2a2b. 
As for the evidences about the dated graphics, I've given none because I don't need to. You had already gave them. Look at your own video about that shoot-em-up and then look at videos from AAA games like Killzone 2, Gran Turismo 5, Crysis, Project Gotham 4, FIFA 13, etc. Don't they seem to have better graphics? Honestly, if you say no, I can't do more about that. I won't search for someone on the internet, expert or not, that tells that shoot-em-up has clearly worse graphics than most of 7th gen titles. That is actually moving away from the evidences. Much better than to see the opinion of someone about something is to see that something with your own eyes. If you tell me your eyes see no difference on those videos, I laugh a bit and then I just quit this debate.

2a3a.  You seem to be nervous. Is it because we have finally got into a substantial point where you can't escape of its objectiveness? You were so interesting in understanding what could qualify as a criteria to assess the depth of a game and the commitment of a developer. Now that you have a solid answer, you're scared about how miserably Nintendo will look on that. You're panicking so hard that you haven't even said a word about that. Instead, you've just focused on 1 single detail (that you know you can't win) and tried to make me unreasonable about that matter.

But you know, I know and everybody knows that art costs nothing. Some artists are just more talented than others. That means, for the same work hours, they will produce better pieces of art than others. They won't make a bigger game or a more sophisticated gameplay. They may even focus on the simplicity you were talking about and thus making in some months a game that sells millions.

But even if all of this wasn't true, even if I'm all wrong and you're all right about this art costing nothing, there's still the problem that art is subjective and thus not measurable. So, it can't be included in this analysis. I won't say this analysis shows the best games and the best developers. It's far from representing my tastes. But it shows something neither I nor you can't deny. It get us somewhere rather than making us going in circles in subjective matters because we have different visions due to our different tastes.

So please forget about the philosophic debates about art and the meaning of evolution and start focusing on what can get you somewhere. You won't do it for me. You will do it for yourself. Stop lying to yourself. In the end, you can still think Nintendo is the best. But then you'll also know in what it fails miserably. You will honestly say Nintendo is the best game developer in your opinion rather than pretending it is the best in everything and that it has no weak spots.

Than prove that. Because you said Wii had better graphics than the 6th gen games ("as evidence I say that the Wii indisputably can and has done graphics far superior to the graphics of previous generations"). Then prove Mario Galaxy 2 has far superior graphics than Gran Turismo 4 or Project Gotham 2. Otherwise, you can't say you have evidence.

"Balloon based games" are boring games based on boring reading of boring messages in bored ballons. From the 6th generation onwards, it was replaced by voice acting in non-lazy gaming studios. Unfourtunately, Nintendo was not one of those. That's my personal view about it

Objectively, "balloon based games" usually belong to a major classification: discrete input games, as opposed to continuous input games. Taking Pokemon as example, it's discrete-input because I tell the pokemon to perform the attack rather than controlling the pokemon and making the attack myself with my own skills. Taking another example, a RTS game is also discrete-input since I click on the tank and then click on the target (to tell the tank to shoot the target). The inputs are performed one by one and they don't involve physical skills, like a driving game or a FPS or a third-person action or a sports game does, which are then continuous-input games. Unless the sports game is like Championship Manager and, in that case, it's a menu-based game (which also belongs to the discrete-input group).

In these kind of games, it's much easier to achieve gameplay with more than 100 variants since the animations, the sounds and the gameplay mechanics are very limited or even non-existent.

I haven't rejected any of your 10 games. I've just rejected your criteria because it was misunderstood from my words. If you tell me the 10 games you've listed qualify for the photo-realistic environments (environments replicated from reality) requirement then I may accept or reject each of them based on my research. As for now, I don't need to do any research on them. The challenge is yours, not mine. I have already done mine in regards to Sony, Microsoft and some other companies...and I also said the only Nintendo game I was seeing capable of qualifying was Pokemon. That doesn't mean I claim it's the only one on Nintendo's list. I'm still waiting for YOUR list and then take some conclusions. But you're delaying it and I'm wodering why. You were so quick to speak about SNES specs. Now you're so lazy...

I didn't understand what is the requirement you're trying to say that WarioWare fulfills. Please let me know.

Wii Sports Resort has dozens of variants of what? For example, I know that FIFA has thousands of players and each of them has his own skills map, which will make him behave differently than other players in certain situations. Of course the situations and the way they develop can be much more than thousands but that's the output. The input (more than 100 players) is what makes them to be infinite and it's what is work from the dev. Plus, even if you're talking about inputs, "to have dozens, possibly over 100" isn't enough. "To have hundreds, possibly 1000" is more like it (then I know it has 100 for sure). Don't forget we are talking about lower limits. If the game struggles to get 100, forget it.

Regarding Brain Age, I didn't talk about gameplay elements. Everything can be a gameplay element. "Gameplay variant" means it's a different version of the same gameplay. Taking FIFA as example, that game could have only 1 player skills map and then every player would behave like the others (yet, the gameplay would be complete). Taking Gran Turismo 5 as example, that game could have only 1 car handling and then every car would behave like the others (yet, the gameplay would be complete). But if I remove gameplay elements, the gameplay becomes incomplete. If I remove all gameplay elements but 1, the gameplay simply doesn't exist anymore.

As for now, Nintendo continues to have only Pokemon qualified.

Then stick to the issue and don't make assumptions on the overall matter.

No, I wasn't talking about that. And yes, I do have better evidence:

http://www.youtube.com/watch?v=pEIC70VzwAY

As you can see: gravity, "Little Prince" style planetoids and even transporters between different gravity systems are all there, in a Sega's game launched in 2001. Sega's shown Nintendo how to do it.