Well, you can break that circle in a couple of ways. You could (and prolly should), for example:
-design a system that has appeal even in absence of a 'killer-app'. The DS had this advantage, through an interesting input device, and the REV probably will to.
-create a killer-app for launch. N64 tried this with M64, though other flaws brought the system down, and MS managed this with Halo.
-persuade as many 3rd parties as possible to develop games for the system in spite of the fact the system's popularity is unknown. The REV's developer-friendly hardware, innovate features, standard-sized discs and PR speak about broad appeal will help with this. But what REALLY helps is, you know, spreading the moolah around.