Well, NGC's gamecube support could have been greatly increased if they used DVDS, I'm pretty sure that wasn't Iwata's idea. Nintendo was just afraid of piracy of all things. 

Neutering NOA was a poor choice though but at the end of the day, it comes down to the hardware and Sony and Microsoft were doing things in hardware that Nintendo just refused to do and downplayed. Like online and HD graphics. 

Nintendo had a chance to bridge relationships with 3rd parties with the Wii U but they just under delivered.  It did shatter relationships in the west but the return from those that did still support NIntendo was tremendous during 2004-2010. The truth be told, if Wii and DS didn't come at the right place at the right time, the next Nintendo consoles after the GCN and GBA would have, in my opinion, flopped as well. 

Their target audience on their consoles is just not the same as the target audience of the 3rd party developers. If Nintendo doesn't change their line-up and console politics third-party games will probably never sell on their consoles.

They already have and they will again if they're the right games.

De Blob did well. Guitar hero 5 sold the best on Wii. Goldeneye and Epic Mickey both sold well. Tiger Woods sold better and was a better game with motion+. I think EA sports in general did really well in the early and mid life of the Wii.

I think the way to go is to fill a void in the library with a quality exclusive title.
No first FPS? Why not a new good Turok! etc etc

Very well said. Games like GTAV, or Witcher III which are great games, I don't think that's the audience Nintendo wants to cater to. Due to how massive the games are, they mights sell pretty decently but not enough to warrant continuos support. But Japanese 3rd party support, yeah I think those will continue to sell as they have since the NES days. And this is because of the bridges Nintendo burned with western 3rd parties. They made sure to take care of their needs first and overtime 3rd parties didn't even bother. Bethesda and Rockstar made sure to let Nintnedo know that. They'd been left out for so long, they have greate respect for Nintendo, but they'd been left out so long that it's like, "Why even bother anymore, they're not going to cater to our needs". 

I think really in a way there was basically a "coup" inside of Nintendo where the Japanese development side took over and largely undid all the good things people like Howard Lincoln and Minoru Arakawa did. I suspect some people at Nintendo in Japan on the development side were also jealous of Rareware and wanted them out of the picture. 

Couldn't have a Western studio being Nintendo's flagship studio. 

In 2000, Nintendo had good balance between Japanese and Western development, when Arakawa/Lincoln stepped down (or thereabouts). By 2003/04 everything about that would largely be wound down, it was doubly disastrous too because this is when Western developers became much more important.

I mean, notice that those games are Wii games. The Wii is um, very hard to bring up as a viable point as to how western 3rd party content sells because, as much as I hate to say it, most people who bought the Wii were casuals, unless somehow during the span of 2006-2011 Nintendo fans increased by 80 million. Novelty sold those games. I guess I worded my op wrong or not within the real issue here. I guess my real question is even if Nintendo made a console to stand toe to toe with PS5 and Scorpio, would these types of games sell on that device. Would PS and Xbox fans just drop those brands and go to Nintendo because it supports all games. I honestly don't think that'd happen. I think those games would still sell better on PS and XB and due to the demographic of a good chunk of Nintendo fans, those titles wouldn't sell that well. 

But again to agree with your point, they have to be the right games.

If nintendo makes a console that releases the same time as the others, and is on equal footing power wise.

Yes.

If nintendo launches 4years late, and is 1/3rd the power..... then No.

Nintendo, specifically Miyamoto, probably felt threatened by Rare however, I don't think Nintendo wouldn't have bought Rare. I mean it really could have gone either way but they did own a considerable amount of Rare but I heard that the way it went was, the talented individuals at Rare had left the company before Nintendo could buy them out. I don't know how true that is, but I'd imagine that's why they didn't have Rare as one of their flagship studios. 

Nintendo has also had a really bad experience with European developers too for some reason. Argonaut and Rare immediately come to mind. 

All I know is Nintendo circa 2000 -

Rareware, Left Field, Angel Studios, Retro Studios, LucasArts/Star Wars deal, Factor 5, NST

Within about 4 years all of these were gone, except Retro Studios which was limited to working on only 1 game at a time, when the studio was initially supposed to be doing 3-4 games. 

Don't drink the casual kool-aid. Reality is more complicated than that.