I've never really seen much Nintendo merchandise, outside Club Nintendo.  That said, several years ago I did find a New Super Mario Bros DS Birthday cake in Tesco several years ago, as it was approaching my cousin's birthday I bought it for them.

That's just a picture of it I found on google.

Sega with sonic, you have cartoons, toys, clothing... heck Blacksaber still sleeps with his sonic pluche..

When has Nintendo games failed?

When it sold 3 millions.

Uncharted; Drake's Fortune sold 3 million 66 thousand copies but that is not a failure. Three million sold of any game is no failure.

Wii Music?

okay, so here's the thing about merchandising. look at the list of merchandise you mentioned (game or movie related) and then look at who would be buying that kind of stuff. do you see where i'm going with this yet? no, let me help you out. ..kids buy franchised merchandise and therefore you have to be making ... **banhammered**

And that's also proof that something that is heavily merchandisable cannot endure for ever if the prime product declines, unless they out-and-out make the prime product into something else

Saw that in Tesco stores that's near me too years ago.

The Halo Franchise....if their is something that can be bigger in merchandise then it probably is Halo. We are at an point that for a lot of people Halo is not just a game but an lifestyle.