Remember when the Nintendo Wii was an absolute powerhouse on the sales charts? When Microsoft and Sony couldn't come close to touching it? Well, those days are over.
One of the perils of making a video game console with hardware a full generation behind that of your competitors is that your console will become outdated much faster. That's one of the issues that Nintendo is facing now: trying to sell a console that still can't do HD graphics. Combine that with far less third-party game support than Microsoft and Sony, and you've got a recipe for terrible sales.
So now that the Wii's novelty has worn off, Microsoft is eating its lunch. Last month, Microsoft sold 360,000 Xbox 360s, Sony sold 260,000 Playstation 3s, and Nintendo sold 190,000 Wiis. Not great numbers. But Nintendo is already prepping the release of its followup, the WiiU, next year. But will they suffer the same fate, putting out a console with current-gen specs only to be buried by Microsoft and Sony a year later with something much more powerful? We'll see.