The issue is the games get pretty goddamn stale and not everyone wants to have the same art style they grew up with. Nostalgia goggles aren't present for everyone.
I don't think game companies should follow one generation, give them the games they want until they're done playing games, and then say, "Welp, we had a good run, closing down shop."
Nintendo doesn't focus on this generation, and a lot of people grew up with Nintendo games. And Nintendo will keep making games that people grow up with.