One thing that I figure did Hudson no favours was that for a long time I've seen them as more of a retro company. They have Bonk, Adventure Island, Bomberman, Star Soldier and were doing Mario Party. But that seems to be all they do. What absolutely must-play games have they released since the first Mario Party? It's like the same stuff again and again. They had a time where they were proliferic with new concepts but then things became very stale. Taito is another company that is very similar. It was a big Japanese developer but over time they seemed to cease creating interesting new content and we just got variations of Bubble Bobble and Space Invaders. Now they pretty much don't exist anymore and are owned by a bigger company, just like Hudson.
Meanwhile the parent companies, Square Enix and Konami, have remained relevent. They have their favourite franchises they like to milk but they do new stuff, too. They seem current and not like some retro company that makes cookie-cutter nostalgia games. That makes all the difference.
I think it shows the perils of resting on your laurels. Hudson might have been doing well releasing annual Mario Party games but where did that get them in the long run? The failure to innovate and the utter frequency of titles made the series unessential. Same with Bomberman. Bomberman is lots of fun but it is so stale. If you've played one Bomberman, you've played them all. It's a series where you clearly need to have one title but you only need ONE title and you've got your Bomberman fill. Compare that to something like Zelda where there is a clear incentive to play every single game in the series.
Interesting that Kisaki called this the "Call of Duty" gen. Call of Duty will probably sink Activision like Hudson's stale franchises sunk them. Frequent sequels with little to distingish between them is the path to failure. And Activision does nothing else and is open about only being interested in IP that can be exploited. Like how Hudson went from being an innovative company on the T-16 to "those Bomberman guys", Activision will become "those Call of Duty guys" if they aren't that already.
You don't want to get stuck in a rut. This is why it is important to take risks with new IP and not rely on sequels all the time. Videogame companies that get stuck in a rut, fail.