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I also think if Nintendo cannot continue having such little development happening in the West and remain relevant in the West indefinitely.

20/30 year old Japanese franchises are nice, but you can't rely on the same 5 or 6 franchises to do all the heavy lifting for a platform over and over and over again.

New Super Mario Bros. was cool because a lot of people hadn't played a 2D Mario since Super Mario World like 15+ years prior. Now it's a new Mario platformer every year and surprise, surprise, NSMBU feels dated and isn't exciting very many of the non-Nintendo faithful to buy a Wii U.

Nintendo's gotta have more development happening in the West if they want to appeal to the West. Dragon Quest and Monster Hunter mean very little here. And I don't just mean development as in putting a handful of Western studios on old Nintendo IPs that EAD's too busy to bother with.