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The problem to me has never been output as lets face it most hardcore Nintendo fans buy both their systems.

Consolidated library will not fix the issue as we already seen it this gen with multiple games on both systems and people still wanting more.

The problem is variety and lack of games for adults. You will never win new customers without them. There is only so many mario themed games you can play before you want something else.

As much has people hate 3rd parties they fill voids for xbox one and ps4. However we know Nintendo can't win them so their only choice is expansion of new studios and fill these gaps with genres that Nintendo console lack.