I think *a lot* of people do not realize that pubs (and devs) spent a god-awful amount of money ramping up for PS360-spec machines for the current gen, when this gen was getting started.
This meant that they bought tons of equipment, developed engines, staffed up, bought software, etc., with an assumption that the PS360 would dominate and the WIi would be an also-ran. When that didn't happen--when the Wii did, in fact, dominate--it still didn't matter: they had invested massively in an underlying infrastructure that favored HD development and to go full-bore on the Wii would mean obscene amounts of wasted money.
Remember: most of the pubs and devs expected another PS2-level userbase, at the very least, between the HD twins, so those investments made sense at the time. When that didn't happen--when the market they expected did not materialize--they were left with a much smaller one that couldn't support all of these HD titles and more importantly, developers (who, remember, spent tons of money gearing up for work they didn't end up getting or had canceled due to a much smaller-than-expected userbase) so, naturally, *tons* of devs failed because when you make assumptions about market size, where your game might actually have a chance on a userbase of 100 million, and that userbase doesn't exist/materialize, you find yourself in a tight spot.
Source: me, someone who talks to devs and pubs--existing and defunct--all the time.
EDIT: and wow is this off-topic.
This meant that they bought tons of equipment, developed engines, staffed up, bought software, etc., with an assumption that the PS360 would dominate and the WIi would be an also-ran. When that didn't happen--when the Wii did, in fact, dominate--it still didn't matter: they had invested massively in an underlying infrastructure that favored HD development and to go full-bore on the Wii would mean obscene amounts of wasted money.
Remember: most of the pubs and devs expected another PS2-level userbase, at the very least, between the HD twins, so those investments made sense at the time. When that didn't happen--when the market they expected did not materialize--they were left with a much smaller one that couldn't support all of these HD titles and more importantly, developers (who, remember, spent tons of money gearing up for work they didn't end up getting or had canceled due to a much smaller-than-expected userbase) so, naturally, *tons* of devs failed because when you make assumptions about market size, where your game might actually have a chance on a userbase of 100 million, and that userbase doesn't exist/materialize, you find yourself in a tight spot.
Source: me, someone who talks to devs and pubs--existing and defunct--all the time.
EDIT: and wow is this off-topic.