The thing is, their software is fine, people just want them to get with the times when it comes to online play, unified accounts and their strange DRM practices (I shouldn't have to call to get my digital games back if I break a 3DS). I think those are all valid.
Its funny that companies like Atlus have found success bringing over and making 'niche' games. They are a smart company, they will tweet a photo of a character from Persona and ask fans why they like said character. Their responses are used to shape the character and see what not to change in future installments.
While SEGA, Konami, Namco and co already know what we want... right? We want Gears of War games.
Then consoles are doing terribly in Japan, so I guess I can see why they are appealing to the mass audience (which last generation was like hardcore shooting games). I think shooting genre is sorta slowing down. Evolve, Titanfall and even the last COD didn't do so great (COD did good but not better than before). Not to mention Hardline is looking like a bomb already.
I think most gamers (especially new ones) aren't thrilled with 'OMG LUKE AT THE GRAPKS', they just want a fun game to play and get lost in with their friends. I see why Minecraft was a huge success and I'll tell you this: It wasn't because its epic storyline and triple A graphics (realistic destruction!!!)
I know gamers don't want to hear this, but mobile is where the money is at. Low cost of entry, high gains.