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In nutshell:

This

and this:

Turned into this:

 

Easy to pick and play/old school arcadey style games and cartoony style IP are now avaialble in droves for free for these devices. It's simply caught Nintendo unprepared and now they're struggling to redefine themselves since they can't go back to the hardcore market as they alienated too many and allowed MS/Sony to cement their standing in that audience.