That's the impression I'm getting from these graphs, showing how many titles were offered for sale/download on each of the platform holder's online services since launch. While the numbers obviously fluctuate from month-to-month on all three - Xbox Live, the PlayStation Store and the Wii Shop Channel - general trends still present themselves. Like the fact all three hit a peak in late 2007 before dropping off in the first half of 2008, with the number of XBL Arcade, PSN and Virtual Console games going through the floor. Lucky for Xbox Originals, WiiWare and PSP downloads then!
The effect is greater for some than others. The number of XBLA games, for example, may be down from Sep/Oct 2007 onwards, but they're still at a fairly healthy figure. Downloadable PS3 games look a little worse, culminating in not a single new game being released for the PSN in May, but then, their numbers were never that high to begin with. Which leaves the Wii as the worst hit, as the number of Virtual Console games has gone from an average of 12-14 per month in 2007 to only 6-8 in 2008.
Sure, the introduction of Xbox Originals and PSP downloads in November helped the 360 and PS3, and as you can see, the launch of WiiWare did the same for the total numbers of games available on Wii, but isn't that just plastering over the cracks? Where are the Virtual Console games? Where are the PSN games? Shouldn't these new offerings be adding to the old ones, instead of augmenting/replacing them?