Nintendo did quite well before opening up the platform to third party developers.
but then they went into the game console business, and did even better
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I finally bought the new Apple TV last week and I have been very disappointed with the lack of apps and games. I think it has great potential as a platform. The graphics aren't console quality, but it looks great compared to a Wii, which I think is a more realistic comparison. Maybe Apple should bundle a controller? I don't really know what the answer is, I am just surprised so few developers have adapted their games.
i'd guess, you're right on it. it's probably mostly the lack of a dedicated & good 1st party controller.