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The OP post is interesting. What happens is probably that each generation some of Nintendo's customers outgrow their products. The Wii was a hot enough product to buck the trend, but the problem is basically Nintendo's IP weakening with time. Mario doesn't sell anymore because most gamers are in their 20's and 30's and Mario just doesn't interest them.

I do think Nintendo gets the picture, here, or at least a few people working there, do. Bayonetta isn't oldschool Nintendo, but it also isn't enough on it's own.