A big draw for Nintendo is franchise loyalists. There are people who continue to buy Nintendo systems simply to continue playing Zelda, even though they prefer the other consoles for almost all other use. When you have someone who bought Wii specifically so they could play Twilight Princess, and they do most of their other gaming on the 360, of course Sega is going to have a hard time getting people to buy software for Wii.
You could make similar arguments for Microsoft and Sony, but frankly, what franchise can compare to a Zelda or a Mario? Final Fantasy maybe, but that's never been entirely exclusive, and even started on Nintendo. Halo? Maybe someday, but at this point I can't imagine it holding a candle to the more venerable series.
The term you're looking for is "rhythm gaming," and to be perfectly honest I think it'll be around for a while yet.
If Jobs & co. had just trademarked the lowercase 'i' we could have bypassed this whole discussion. "a, b, c, d, e, f, g, h, i(TM)..."
A big draw for Nintendo is franchise loyalists. There are people who continue to buy Nintendo systems simply to continue playing Zelda, even though they prefer the other consoles for almost all other use. When you have someone who bought Wii specifically so they could play Twilight Princess, and they do most of their other gaming on the 360, of course Sega is going to have a hard time getting people to buy software for Wii. You could make similar arguments for Microsoft and Sony, but frankly, what franchise can compare to a Zelda or a Mario? Final Fantasy maybe, but that's never been entirely exclusive, and even started on Nintendo. Halo? Maybe someday, but at this point I can't imagine it holding a candle to the more venerable series.