I think Luigi Dude missed the point, waggle vs. traditional controls had nothing to do with those companies that went out of business, that was all the coming of the iPad that erased the casual market from the console space and all those smaller companies that only made casual games or licensed garbage were the ones to go under.
I guess if you don't like Metal Gear, Castlevania, Resident Evil, Street Fighter, Assassin's Creed, Elder Scrolls, Final Fantasy, Mortal Kombat, Ratchet and Clank, Jak and Dexter, Sonic, Ninja Gaiden, Tomb Raider, Dragon Age, Diablo, Zone of Enders, Tekken, God of War, Prince of Persia, Batman, Bayonetta*, Gran Turismo, Fable, and The Last of Us and would rather play Nicktoons, Disney Princess, bad movie based knock off, 1000th Tetris clone, mini game collection, and the only casual game worth mentioning, Bomberman, than yes last generation was terrible for traditional gaming.
Wii was a damn fluke anyone that still thinks it was going to save the industry, by the way most of the companies that did go under made **** cash grabs for the Wii too, well I guess you are as delusional as the boys at Nintendo. Unless you are just one of them undercover which makes no sense so I retract that theory.
What hurt most of those publishers was NOT the shift to HD and the rising cost of production, the smart ones are thriving on the digital channels like XBLA, PSN, Steam, and eShop. The ones that failed were the same shitty companies that kept making the same shitty cash in's every generation with one or two token games here and there to appease fans of some long forgotten genre/franchise while the companies that knew not to jump into the iPad/Android/Wii marketplace survived because they know, as does Hollywood, that big budgets can bring in big profits. Just ask Disney who spent four billion dollars on a movie that is smashing box office records left and right how if you invest the right money the audience will come back. Or ask Sony who is investing their entire fortune on PS4 and it is handily paying off. Yeah I guess Sony should be worried that their console is clearing out the garbage developers and only leaving behind the top quality companies who have the money to make the games the market is asking for, because if the market wasn't asking for those types of games then they would reject them you know that right? It is simple economics if people were tired of Call of Duty, Elder Scrolls, and Madden then they would just stop buying them. oh right those games aren't made for a Nintendo console so they are ****, like Bayonetta was **** until it showed up on Wii U then the Nintendo faithful showed up to sings it's praises as the "hard core" game gamers needed to "bring hard core gamers back to Wii U" as if one game was going to erase all the negative press of the countless games NOT on the console.
Okay sure, those games all SUCK until they are released on a Nintendo console then they are touted as "proof" Nintendo matters. No, waggle was a double edged sword, it brought in the casuals, the grandmas , the budget conscious family with kids, and the die hard Nintendo faithful. The casuals, budget family with kids, and the grandmas all got ipads and forgot what Nintendo was, the die hard Nintendo faithful are too small a group to matter anymore, are shrinking each generation, and are more sharply divide on everything than American politicians are.