It also has to do with the fact that Nintendo doesn´t have that many In-house developement teams and those teams tend to take care of the big franchises.
Look, we had Miyamoto working on Wii Fit and Wii music for the last two years together with some of the best teams Nintendo has. There are plenty of 2nd Party developers making games for DS and Wii but at its core Nintendo isn´t as big as you seem to think. They also have to take care of games like Wii Fit, Wii Music, Wii Sports Resort...
Nintendo is releasing so many games it´s just amazing. Now if you look back at the N64 era: How many (big) games did Nintendo´s inhouse studios release? A lot of the big N64 games have been developed by Rare.
Nintendo wants to keep their biggest franchises in Japan to make it possible for their most talented developers to take care of them. They developed on Wii Sports, Mario Galaxy (yeah this one is from EAD Tokyo, but still), Twilight Princess, Animal Crossing, Wii Fit, Wii Music and Wii Sports resort. And those are just the Wii games.
I mean... hey, they are just human beings, right? 
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