I don't think it's fair to consider all games with Mario in the title to be from the same IP. Most Mario games that are released simply use Mario as a Mascot, or brand identity. The actual gameplay, engines, and teams beings used to create these titles are completely different. To suggest that Mario Kart and Mario Party are the same game or represent market over-saturation is a bit short-sighted.
From Nintendo's standpoint, it just makes sense to capitalize on the Mario branding. He is synonymous with Nintendo and gaming nostalgia. Certainly Microsoft or Sony would be repeating the same formula if they had a character as identifiable and lucrative as the mustachioed plumber. Even now, Sony seems like they are trying to create similar branding opportunities with Sackboy. Microsoft has yet to find or identify thier Mickey Mouse.
Finally, Super Mario Bros. 2 (US) and Kirby's Epic Yarn both represent ways in which potentially new IPs can be repurposed with more recognizable images to ensure strong sales.
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