What "many consoles" failed? N64? The system that was competitive with PS1 in the West and still beat the Saturn > 3:1 despite releasing almost two full years later? Gamecube, the system that still had huge 1P hits like Smash Bros. Melee and MK: Double Dash? The Wii U, which still has the highest attach rate relative install base for any system ever on average? Those "failures"?
The truth of the matter is, outside of a brief period with 3DS in its first year, Nintendo never lost money on any system. Not. Once. They've been profitable with every device or in cases like Virtual Boy & 64DD, contained/quarantined the failure before it became anything more than a footnote on their bottom line. They wouldn't forgo foresight and release something like Concord into the gaming space, letting it play out the way modern SIE does.
And that speaks volumes to differences in their leadership these days, IMHO.
I don't have to. The typical buying patterns of casuals & mainstream, & the typical spending habits of hardcore & core gamers (who make up the early adopters), say enough for me. We have generations of consoles to prove it.
And? I'm not speaking for them. I'm speaking for myself and those who feel similar about the precedent this now invites, the optics it creates for the brand, and the implications it'll likely have for the brand going forward.
Cool, let them have their fun. But for me, gaming is SIGNIFICANTLY more involved than just those IP. Like, those IP barely register with me compared to the games I genuinely love.
But I'd bet you it's those like myself, & other hardcore & core enthusiasts, who love those other IP, who are the reasons the industry ever got big enough to support the FIFAs, CODs, Fortnites & GTAs in the first place. The people who only play those massive mainstream IP, are not the backbone of gaming.