two words - unnecessary competition
releasing title after title introduces competition so that rather than squeezing out every single possible buyer, you distribute buyers across several different games thereby creating internal demographics within the core. With so many games, gamers must become choosey because they don't have an infinite amount of resources to buy all of them.
The better idea is to force gamers to try other genre Nintendo games by lack of support. That way, each Nintendo game gets full recognition and play time and profit. It also creates an artificial popularity. "Everybody has played it"- Why, because the pickins' were slim.
It is the smarter business move, and we've all seen that nintendo is the smarter company when it comes to making money.