Seems you missed de Blob on Wii and Color Wars on 360.

Well, at least when they want to try something else they don't mess around. Splatoon is a pretty good first take on the TPS genre for Nintendo.

It isn't really a risk. First of all I think you're also confusing "3rd party" for what is actually "2nd party". When a publisher pays a studio to develop something for them, that's a 2nd party game. 

Instead of pumping money into Bayonetta 2, Wonderful 101 (which was NOT a cheap game to make per Platinum), and Devil's Third they could've instead financed a FPS shooter or Western adventure RPG, they just choose to continually greenlight a lot of very niche Japanese titles that don't even sell in Japan. 

Their software output in the 90s was a lot more varied and mainstream (1080, Wave Race, Kobe Bryant NBA, GoldenEye, Star Wars ... these are games with mass appeal). 

Like it pains me to say it somtimes because I like niche-y Japanese games sometimes, but does the Wii U really need a 2D Yoshi game after all the other 2D games it already has and given that the 3DS also already has a 2D Yoshi game? 

They kinda got be smarter about what they're greenlighting. Yes, one "Witcher type" game would cost more than a Yoshi game, but when they're making like 4 or 5 games that have no shot at really selling big numbers, one wonders if it wouldn't have been a better idea to just make say 2 games with the same money but just focus on more of a mainstream appeal with them. 

No, I'm not confusing it, I'm mostly reserving 2nd party for studios that are, if independant, in long term exlusive relationship with some platfrom holder - if Nintendo, say, pays Obisidian to make a game for them, I see that as 3rd party exclusive, since Obsidian remains 3rd party. If Nintendo starts ordering games from them, and Obsidian starts making them just for Nintendo I would see them as 2nd party.

And comapring funds needed to make Bayonetta, Wonderful 101 and Devi'ls Third to games like Skyrim and Witcher is..well, bit silly. Cause that's the level of funding we're talking here about.

Changing their outlook to accomodate Western tastes nearly ruined SE and really messed up the FF franchise. They are better off sticking with what they are known for and not trying to be something they are not.

Wonderful 101 for example wasn't a cheap game to make. Platinum has confirmed this, it cost as much as MGS Rising or any of their other games apparently. Go figure. 

And realistically Nintendo doesn't need to feature match in every way. Splatoon doesn't have every feature every shooter on the market does. But it uses the same basic forumla in a unique way and it works. Splatoon likely doesn't have anywhere near the budget of something like Destiny, but because the genre/play type is popular it's at least finding some success on the market. 

What exactly is Western about the Final Fantasy series? The effeminate J-Pop boy-band aesthic sure as heck isn't for the Western audience. 

Nintendo has worked successfully well with Western development in the past, see: Killer Instinct, GoldenEye, Sim City, Perfect Dark, Star Fox (co-developed in the West), Star Wars, Kobe Bryant NBA, Banjo-Kazooie, DKC, and making Western centric titles like 1080 Snowboarding too. So I don't see that as a problem.

If anything Nintendo has gone too far into the "weird/nichey" relam of Japanese games ... they didn't make games like Xenoblade or Fatal Frame or Bayonetta in the past, but I almost kind of feel like Nintendo is basically financing these games as a favor to their Japanese development friends moreso than actually thinking they could make money off of them.  

Except JRPGs is a dud genre right now. As much as I hate to say it, this is exactly the types of projects they should be avoiding. 

Less:

JRPGs, 2D platformers, niche Japanese action games

More: 

Competetive multiplayer games, Western-centric single/multiplayer games

I think they should just focus on new things they can add to Splatoon and its sequel

Most of those were involved with Rare, and most of that western development disappeared outside of Rare and a couple others. SE themselves said they tried to alter their games to suit western tastes and that is where they messed up. They said they wanted that CoD kind of action and it hurt them. SE realized the fans wanted what they were known for after they released Bravely Default on 3DS and it sold well. If Nintendo tried the same thing they would end up in the same boat as SE when they shifted focus. It just would be a bad idea. Contracting someone to make something is one thing, but its another thing when you're using your own dev teams to do it.