I don't think they can undertake Xbox/Playstation. Nintendo is a niche while Xbox/Playstation another. I guess they just want people to buy newer consoles and games, which make sense for them.
They did this for a number of years on Wii/Wii U. You could buy Smash 64 from them for $10. It wasn't nearly as popular as their current games. Paper Mario 64 for $10 was sick, though. Loved it after having played TTYD.