Bizarre Choices in Business

Microsoft and Sony seem to banking, heavily, that motion control is still the wave of the future.
Yet, sales numbers for the Wii indicate that it is starting fizzle out.
It seems baffling that they cannot see the same numbers we see here and not have some serious concerns.
I know they believe that "Well, the Wii has a terrible library" and all...which is undoubtedly true...but the library was pretty bad a year ago or so when nobody could unseat them in the sales without some huge title hitting. The 360 unseated Wii this past month with no significant releases or major price cuts. 
That is what one would call an "omen".
Natal and Move seem poised to hit the market at the worst possible time...and the releases are likely to end up big deals. Microsoft, in particular, has heavily invested in their tech, so they really can't walk away from it. Sony hasn't been nearly as vested in Move as MS was in Natal, so they might be more capable of cutting their losses.
But this just seems like an extremely poor idea. And one that they will spend millions upon millions on.