The AAA market seems to be chasing a business model that isn’t there any more. I don’t know why game developers still chase photo realism, it isn’t what makes money.
Or it just means Nintendo isn’t going to rely on video games for growth.
The idea of paying anything for video games is already going away, with free to play games doing well in the youth market. And while the Switch is their best selling console, it is effectively a tablet with Bluetooth controllers and standard hardware. I don’t see Nintendo being able to maintain selling hardware after this next generation.
But Nintendo has a lot of IP that it hasn’t really tapped outside of video games. I expect that to change.