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They have no need to innovate, because for some bizarre reason the entire industry has completely ceded the vast territories of "in-person multiplayer" and "games for children" to them for decades. They're sitting on an uncontested monopoly. For a parent who wants to play video games with their young children, Nintendo is pretty much the only option available. If you want to get drunk and have a fun night in with friends, no other company even tries to compete with Nintendo's offerings: Mario Kart and Super Smash Bros. remain the gold standard to this day. Even the Halo series mostly gave up on split screen play years ago. I don't know why, but Nintendo is the only company that still makes video games for people who want to play in the same room as each other. They're the exact same six games they've been making over and over again since 1994, granted, but it's not like there are many alternatives out there outside of sports and fighting games, but even those are often only 2-player and increasingly designed for online play at the expense of the in-person experience.
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