Nintendo has been either up or down, depending on which platform you're looking at.
For the GCN side, I absolutely agree, Nintendo dropped the ball pretty big, with only a few games worth noting (Fire Emblem being one of them), which were spread unbelievably thin.
For the DS side, they seemed to start off pretty slow, but with titles like Ouendan, NSMB, the best Mario Kart since the SNES days, the fastest-selling Pokemon titles ever made, multiple partnerships with Square Enix using the Mario franchise... I think they're doing fine. And all this great software notwithstanding, there's also the "non-game" craze/fiasco they've pioneered.
Jury's still out on Wii, but it looks like the system has a very steady stream of quality games heading to the platform.
Capcom has always been a company I've wanted to cheer on... but the "Capcom Curse" is not something that's easily forgotten. That aside, their content has been very consistent, not to mention stellar. While it's upsetting that they've abandoned the fighting game genre that made them so unbelievably successful, Phoenix Wright, Lost Planet, Megaman ZX, Okami and Sengoku Basara have definitely cushioned the blow. But dangit, Capcom, how many nightly prayers will I have to say to get a new Rival Schools or Power Stone game?
Bandai Namco hasnt really been doing us any favors lately, with the company being more about spreading the Tales games on so thickly as to make them nearly irrelevant. Do we really need more than THREE Tales remakes within a 2-year span? Not to mention their renewed interest in Tamagotchi and trying desperately to resurrect the Ridge Racer franchise. But despite it all, Tales of the Abyss, Symphonia and Baten Kaitos has kept everything steady as far as decent output.
Konami
well, other than Zone of the Enders (which seemed like the video game equivilent of an Oscar vanity), didnt do any new franchises, but they certainly didnt screw up any of their existing properties. What they put out this past generation was completely spot-on.
Of all the developers this generation, the only one that seems to be dropping the ball in a big way is Sega. Its not like theyre not trying
theyre just trying to be the next EA instead of expanding on what made them so successful: unique games with unbelievable presentation. They pump out deplorable Sonic titles at a rate that would make Nintendo nauseous, and mismanage every hit franchise to the point of nearly dropping off the map. Space Channel 5, Rez, Jet Set Radio, Samba de Amigo, Comix Zone, Vectorman, Virtual On, Shinobi
all great franchises, all but forgotten thanks to this companys boneheaded ploy to be more like Electronic Arts.