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You don't need to wait for a platform to die in order to release another, thats a very risky strategy... Once more casual users become disengaged, there is no garauntee they will re-engage afterwards.

Also releasing a new platform doesn't mean no more software/software sales for the older platform. Even in just terms of recent Nintendo history they released a mainline Pokemon/Metroid exclusive to the 3DS after the Switch was released. Nowadays that'd just be cross gen.