The reason we are seeing this "shovelware" is the same reason we saw so much on Gameboy and its descendants: A 'perfect storm' of leading the market and being easy to develop for.
That is why we are seeing so many Disney, cartoon, and movie tie-in games on Wii. A studio can squirt these games out in a month or two, and make millions on just the "mommy buy me that!!" demographic.
This didn't undo the industry when shelves were overstuffed with kids games for GBA, and it's not actually killing it now.
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