After rereading your post I wanted to specifically reply to your thought of "making more games of genre x will increase the number of people buying games of genre x on that console." Unfortunately the market just doesn't work that way. The consoles already have well established reputations and it makes more sense for developers to develop based off of existing trends than to risk an enormous amount of resources on a gamble of changing those trends. It turns out people who want to play the newest Zelda, Mario, cart, smash brothers retreads will buy a Nintendo console. People who want to play the newest cutting edge shooters will buy a Sony/Microsoft console. That doesn't prevent people from buying and enjoying both, but for the foreseeable future that's how the battle lines are drawn. Unfortunately for Wii U owners they will be heavily excluded out of a majority of great titles whereas most Sony/Microsoft supporters will really only miss out on the newest installment of the aforementioned retreads. This creates a market where consumers want to buy a console that will get them the most mileage for their buck (I use my Wii everyday still, but I continue to be confounded by the sheer stupidity of it being unable to play DVDs) and producers will want to produce on consoles where they can sell the most product.