I disagree. If you look at the sheer breadth and variety of genres Nintendo publishes, and random new IPs created by them that ignite every generation, they are a nightmare to contend with.
Let's just do a rough scan if you were, say, a Sony third-party.
Right away, you can pull the plug on all platformers, kart racers, pet-sims, "cute" games, and probably mascot games in general.
If you wish to develop an adventure game you would have to plan your development schedule around Zelda.
Action game, well, Metroid isn't that big.
Good luck making an RPG or fighting game with Pokemon and Smash lying around. A third-party Nintendo would also probably push all its franchises including Paper Mario. Fire Emblem. Earthbound.
You would either be making genres Nintendo doesn't make, or forever planning your releases around THEIR software schedule.
This is assuming Nintendo doesn't go all aggro like Activision or EA and go around straight-up buying controlling stakes in Konami, Platinum, Namco, etc.
Those are some valid points, but I don't think a Pokemon RPG and Dark Souls or Elder Scrolls are competing for the same type of audience. Not sure if Earthbound or Fire Emblem would outsell or get more recognition than Final Fantasy, Tales or Persona either. Hard to say to be truthfully honest.
I'm not sure if Tekken, Mortal Kombat, DOA, BlazBlue, Street Fighter and Marvel players would buy SSBM to replace those franchises. Will they buy it, yes, but I do not see it as a direct competitor to traditional fighters because to me they are like apples and oranges.
Yeah, I wouldn't try to compete with them with platformers. They got that covered. Ratchet and Clank might pull some admirable numbers, but I would imagine that a authentic 3D Mario will pull higher numbers.
I do not see traditional simulator racing games competing with Kart racers. They are quite different I think. A Forza player will play Mario Kart for fun, but not as a replacement I think.
Action RPG's will have a tough time directly competing with Zelda, but I still think adventure games with RPG elements could coexist with it. Zelda games are rare anyway. It isn't like the come out like Assassin's Creed or COD.
Pikmin??? Hard to say how something like that would sell on PS4 or XBone. I suppose it would appeal to strategy game players, but I am not sure if they would like it's cutesy look. Nintendo gamers would be more open to it's uniqueness, while traditional casual gamers will immediately insinuate that it has no depth and is childish based on it's appearance.
Pet-sims, "cute" games, and mascot games are seemingly kind of rare from third parties, so Nintendo also got that covered.
I think Nintendo franchises and other franchises can co-exist because the game Nintendo makes are unique for the most part and they would stand out from most other games. I don't think the vast majority of their legendary assortment of games would dominate on Sony's and Microsoft's consoles as much as people assume. Yes, I am even talking about third parties.