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RolStoppable said:
If Nintendo made such a "core" game, it would have been the highest selling "core" game on the system, leading to third parties complaining that Nintendo takes away all the software sales.

This is pretty much it. They even did mention when Wii came out that they will leave windows open for 3rd parties to release their games so they can sell well and not compete against their first part games.

We all saw hwo that turned out. Caught them off guard expecting games to come out but nothing, so the long dry spells  occurred.

Also they did try making a mature game. Disaster: Day of Crisis. Wasn't that great.