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I think they're actually underused to be honest.

Why isn't there a Kid Icarus animated series? How about a toy line?

How about a Star Fox anime?

How about a Nintendo Theme Park or even an attraction at Universal or Disney?

Zelda or Metroid movies?

Outside of Mario and Pokemon, Nintendo is pretty low key on the amount of marketing/merchandising they allow other IP (see: Pikmin, F-Zero, Star Fox, etc. etc.).

If Sony or MS had an IP like Mario Kart, lets be honest -- there'd be a new one out every year.