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Meh, let them go play on their smartphones. If 99 cent games are enough to hold their attention, then they can have them.

Nintendo should focus on creating/acquiring three more diverse core IP to broaden their IP appeal. James Bond and two new IP with broad appeal that don't have cartoony mascot characters would be a good start. Nintendo already has Mario, Pokemon, DK, Kirby, etc. it doesn't need more of those, it needs franchises that appeal to a different crowd to strengthen their overall portfolio.