I think Nintendo's finally figured out The Formula. Remember all those years when they said they wanted to find out a way to do away with the expensive, long development cycles most games had? That all of that stuff was crippling the industry and that it wasn't sustainable in the long run? Yeah, they just figured it out.
What Nintendo is doing right now reminds me of what P. Diddy did to hip-hop back in '95. Before that people knew how to make a good hip-hop record, but nobody knew how to package it or market it to the masses. P. Diddy figured that out, and hip-hop has never been the same since. Now everything is bling-bling, garbage beats, garbage lyrics etc. Once Diddy figured out The Formula, nobody had to try to do anything different any more, because they could sell maximum records with minimum effort.
I see a lot of that here. If Nintendo can sell millions of games to people that are perfectly fine with GameCube-level graphics, then why bother spending money on doing anything better? Unfortunately for us, it's really good business.