Is it really "being in touch" if your playerbase is nothing but cultists that will buy anything that has your logo on it?
Being "in touch" would be providing genuine products for people that actually make the decision whether they want to buy your shit or not. There's no choice here, Nintendo's victory strategy is nostalgia, FOMO and peer pressure.

As someone who used to do nothing but play NES, SNES, GC, GB, GBC, GBA games and PS1 and PS2 games on the side, nothing "genuine" has come out of Nintendo for the last ~15-20 years.
When our household got its family computer, I got hooked on to PC gaming, not a single new announcement or console has given me the same type of "holy fuck I need to buy that" like back in the day.