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RolStoppable said:
Soundwave said:

You don't know that for sure. 

The fact is Nintendo has basically 8 really big selling IP ... Pokemon, 3D Mario, 2D Mario, Zelda, Smash, Splatoon, Animal Crossing, Mario Kart. Once you start to saturate these IP with multiple instalments on a hardware platform you start to run out of appeal, I think that plays as large of a factor. 

Nintendo's success in the smartphone realm has been up and down too, they are making decent money from it but I don't think Animal Crossing has been the huge hit on the phone side they were hoping for. Smartphone market is insanely overcrowded and unpredictable. 

What doubt is there? Online subscriptions have little to no expenses, but huge profit margins. A few hundred million dollars in profit every year aren't hard to achieve, add a couple hundred million from the smart devices business and Nintendo is already more than halfway at Nintendo-like profits before hardware and software sales come into the equation. That takes a lot of pressure from having to launch new hardware and gives Nintendo more than enough time for a cohesive and coherent execution of a new hardware launch.

How many Nintendo consoles have had multiple installments of those IPs? SSB, Splatoon, Animal Crossing and Mario Kart have yet to appear twice on the same console. The only Nintendo consoles that had multiple new 2D Mario games were the NES and the Game Boy. 3D Mario appeared twice only on the Wii. Only Pokémon and Zelda have had multiple appearances on a regular basis. That you conclude oversaturation in the absence of multiple installments for most of the IPs you named is baffling.

By the end of this year likely you're going to have 

Zelda 3D (x2) + Zelda 2D (x1)

Mario 3D (x1 or 2 possibly) Mario 2D (x2)

Mario Kart

Smash

Animal Crossing 

Pokemon (several times over)

Fire Emblem

Splatoon 

Donkey Kong Country

Xenoblade

Mario Party

Already with major instalments on the system ... what other IP do they have past the above that would cause a massive hardware boost. 

Nintendo systems don't fade down the stretch by accident, it's likely tied to the above issue as much as anything else. You can only sell so much selling to same people that are interested in a group of about 8 IP before you start hitting diminishing returns. 

The DS was able to bypass that by taping into touch casual gaming before smartphones existed and creating a second swing audience that way, but Switch isn't going to have a 20 million+ selling Nintendogs or Brain Training most likely.