Creating New IPs Dilutes Nintendo's Franchise Output

[Mr Khan]

VGKing said:
They should be able to do both. 3rd parties can create new, successful IP, why can't Nintendo?

Their business models are different. Nintendo, as a first-party publisher, is first and foremost focused on creating games that sell consoles. Nintendo's revenue focus comes more from third party licensing and from the consoles, so their focus is to sustain the franchises that sell consoles, which is their way of achieving growth.

Meanwhile, growth for the third parties come from the games alone, so they are more incentivized for rapid release of successful franchises, which burns those franchises out often.