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The lesson of Nintendo is yes.

Note that this is different in gaming than film because of technical progression. But also Nintendo are very good at "same charm, familiar characters and plot, different feel".

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Nintendo does it the right way. I'm not at all afraid to say I want more Mario, Samus, Fox McCloud, Fire Emblem avatars and the like.

But they don't simply do roster updates, they bring those characters and worlds into new experiences, and they're willing to sit on good games rather than push out yearly new releases with almost nothing different compared to the previous iteration.

And the stability these franchises gives them, allows them to continue to make new IPs that may themselves grow into future tentpoles. So it's not just that they squander those successes, they are often trying to innovate into new things.

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People will tell you they do not want endless sequels. Sales numbers will mostly disagree with them.
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If Microsoft didn't want to use IP of existing studios, they should not have bought those studios. Why buy id if not to get more id?

Disney + Marvel offers a roadmap for extending existing IP. (Keep in mind that the Marvel acquisition was in 2009.)

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It's like phones with smaller screens: they always sell poorly in comparison when available and then it's all you hear about online when it's not.

The usual tricks of "noise signals how many are really upset in absolute terms, not the relative popularity", "people will still make noise about what they don't like regardless if that's more popular overall", and "people who hate one attribute of the product can often still like it enough to buy overall".

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Different people want different things, because they are different.
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Its Microsoft - why not both?
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Obviously people want sequels, that's why hollywood makes so many of them.
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