I think it's the short sighted devlopers that freaked out and bailed on the system because it wasn't up to their standards sales wise that is contributing to the downtime when they should know that Nintendo's classic franchises would help it stay afloat. I also understand that Nintendo needs to step-up on the marketing presentation of the console better and step out of their comfort zone a bit more.
Yep, it requires them to think outside the box a bit and not just crank out another sequel on the same engines they've already been milking for game after game.
Say what you want about Nintendo but they've got a set of brass ones when it comes to trying new things and taking risks. Most of the major players ignored the wii until it was sold out for months straight. Then suddenly it was a mad dash to shovel stuff out the door as fast as possible.
Among that some good stuff still managed to come out. Some revolutionary and even great stuff. But now that everyone has HD TVs its like nothing was learned from the exercise and they are all back to "I can put better sound and graphics into my game on system X"
Nice graphics are good to have, but diverse, fun, immersive, and original experiences are what I really want as a gamer.