Can the world stand another Link adventure? Can it throw another blue shell? Hit the Rainbow Road for another lap? Catch ’em all again? If you’re a Nintendo exec I suspect you’re starting to think that the venerated company is now brushing against the limits of nostalgia and that something – something big – is about to give.

Thankfully the company is poised to take that next step. But what happens if it can’t?

I’m a dedicated Nintendo fan. I’m not die-hard by any means but I would equate the Nintendo universe with the Disney, DC, or Marvel universes in terms of cultural significance. I consider it as important to teach your kids about Mario and Zelda as it is to teach them how to play chess. Nintendo defined the Gen X childhood and parents know that a flagship Nintendo game will be a surefire hit for the whole family. Mom and Dad will play it for the nostalgia and the kids will play it for the whimsical detail and the all-ages mechanics. It’s this magnetism that has made Nintendo as common in playrooms as LEGO and Risk.

My primarily concern, however, is that the next generation will not see the next iteration of these characters. AR and VR promise to shatter the notion of the toy and playroom as we know it and it is Facebook and HTC who are poised to capitalize on those coming markets. For many parents, it’s easier to plop junior down in front of an old iPad than it is to fire up the Wii U and slap in a scratched disk.

Nintendo must dodge a number of raindrops as it moves forward. It is tethered to hardware but knows that general-purpose tablets and phones are far more...

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