This is no different from every other phone manufacturer but Apple. They have no reason to support older phones because it doesn't make them money. It does benefit Apple because they get recurring revenue from the App Store.
You might be willing to pay 20-40 bucks for a game, but the vast majority of users aren't.
They could grant access to their back catalog for something like $10/mo, and roll out segments of the back catalog over time to promote it.
Then use nostalgia-based franchise reboots and new IP (lol, but occasionally something like Splatoon catches on) to push new console sales and then slowly phase-out back-catalog support from older consoles.
You could time the phase-out with a holiday season 2 years into a new console (aligns with discounts and once initial new console buzz wears out).
Seems like a much more predictable revenue stream than hinging on the success of a new console.
You could also create leaderboards and niche competitions for the hardcore audience (Super Mario Maker has a sizable hardcore following).
Perhaps Nintendo feeds on nostalgia brainwaves or something.
https://arstechnica.com/gaming/2017/06/nintendo-switch-short...
It's a shame. Because, as you said, they could effectively print as much money as they wanted with a long-term production run of the NES classic and the obvious sequels for SNES, N64, and Game Boy.
I think they're doing okay running a business.
So long as you can sell a product at a profit, you keep fucking selling it.
In theory the ROM sites have a disclaimer that this is archival purposes, to be downloaded by legal owners, etc. - in practice anyone can download them. But if it wasn't for these borderline illegal sites the games would D I E. Nintendo famously used an 'illegal' ROM of Mario and sold copies of it, some people speculated that they lost the original material.
Yes, I guess piracy sucks and is technically illegal but even I (and I don't play many games at all) had to download cracks for physical legal copies I owned (including once for a game published by SEGA, funnily enough).