To reply to Aqua, even with the DS, I always felt the best games were Japanese on that to begin with. I'm probably part of the problem in that sense.
Also, I don't think Satya will axe the xbox division. When you have loss leaders like Bing around, the Xbox is nowhere near that... yet
So where do folks see the Just Dance, Skylanders, and Disney Infinity audience going? I guess it's too early to tell before the holidays, but at the very least, Just Dance seems to be declining and stuck on Wii at the very least. Skylanders generally stuck on 360/Wii for now and Disney dropped the Wii version. I guess Harker said the Wii and Wii U sales of Skylanders weren't that different (10K), but it makes you wonder whether it'll sell well during the holidays or not.
While that's true (IMHO), it's also true that DS had lots of good selling Western titles. Yeah, most of them were shovelware / tie-in games, but you had also the Scribblenauts series, for example. Now, Western efforts are reduced to the minimum and they don't sell as much as they did in DS era. Going by past software datas, it seems 3DS obtained to capture
1)Nintendo fans
2)Japanese games core fans (see successes for core-aimed titles, including Fire Emblem, which is 1st party, but did much better than past entries)
3)Just a part of the kids / mass audience (LEGO games tend to sell through time on 3DS...also, I'd say Tomodachi Life, which see a 1 million+ shipment in the West, and we could estimate European sales by the recently shared graph, but it's been a while since we had the last update for US)
But it's ignored by
1) Western games core fans
2) A good portion of the kids / mass audience
While it's true that DS was ignored a bit by the former as well, the latter was very, very influent.