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I don't think the answer is for Nintendo to exploit their heralded IPs by expanding development to let others work on them (even though they have done to a limited degree in the past). Nintendo's IPs sell fine and they usually have both great critical and financial reception.

Nintendo needs to expand its library by both making NEW IPs (yes we got Splatoon and Wii Sports, but they need more), and more importantly, they need to cater to third party developers instead of always limiting their hardware for sake of "ingenuity."