Well a few things ... Nintendo probably will be able to support their own console largely on their own simply by streamlining their handheld/console division behind one iOS like shop which then allows the same game to be played on various devices.
And that will also reduce the need for two Mario Karts, two 3D Marios, two 2D Marios, two Animal Crossings, multiple Zeldas, now two Smash Bros, etc. etc. each generation, freeing up those dev teams to work on new/original content and ideas. They can make the one Mario game, and then go work on something else.
That said, lets face it, there is NO Japanese console audience anymore. If Nintendo has an interest in continuing to make games for play on the home television, they have to start accounting for Western tastes moreso.
Some one above mentioned maybe they should cut a deal ... I think perhaps they should look at a large scale deal with Disney/Marvel to make games set in the Marvel Universe. For one, no character property is bigger in the West (at least North America) right now. Iron Man, Avengers, Spider-Man, X-Men, etc., if Nintendo could set up a deal whereby they got several games (exclusive) from Disney in this vein or could even use their own studios like Retro to make these games, it would probably help them a lot.
And I think Marvel straddles that line between family friendly, yet still being cool/relevant to "dudebros". Kids love it, but so do teenagers and grown adults. Marvel is the true epitome of having characters that *really* appeal to everyone (sorry Mickey, take a seat).
Kinda similar to the Star Wars deal Nintendo used to have in the 1990s with Lucasfilm (which ironically is now owned by Disney too), I think Nintendo should look at a collaboration there.
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