I wonder if it was just the state of syndication? By the start of the 1985-86 season, there were by my count, at least 13 games in syndication alone:
-Wheel
-Jeopardy!
-Tic Tac Dough
-Joker's Wild
-LMaD
-$ale of the Century
-Love Connection
-Catch Phrase*
-Newlywed Game*
-Headline Chasers*
-TPiR*
-$100K Pyramid*
-Break the Bank*
*Fall '85 premieres
Out of that list, there were six new shows, and only two made it to a second season. I'm guessing the combination of it being a crowded market and Wheelmania. I do wonder how well it does on a network or as an original on USA's afternoon block. From 1985 through the end of the decade, not too many syndicated games made it to season two. Off the top of my head, $1M Chance of a Lifetime, Hollywood Squares, Dating Game, Win Lose or Draw, and Fun House.
Interestingly enough, I believe Bob Goen said in an interview that Perfect Match, Telepictures's replacement series, performed well enough to get a renewal, but the similarities between that and The Newlywed Game and a potential lawsuit from Chuck Barris led to the cancellation. I'm curious to know how both shows did in the ratings for comparison.