Thats what happens with the most casual of gamers, they come and go with the wind. They tipically dont buy much software aswell. Hardcore gamers are a much better consumer target because each on of them is worth alot of revenue since they buy more games. They are also easierbto please and dont go away when the next shiny trend shows up.
Nintendo might have to adjust their hardware to match the competitors in the future so they can have 3rd party support, but this aproach is not wrong.
Getting the casual gamer is a hit and miss afair.