They tried going head to head after the Nintendo 64 lost them so much ground and allowed a newcomer to dominate. It was called the GameCube and despite a valiant effort for several years, it was again passed by a brand new competitor on the scene relegating Nintendo to 3rd place.
Nintendo isn't trying for things like the first person shooter market any longer. They're in business for their own niche in the console world and that's who they wisely target. The casuals, the kids, and the long time fans of classic Nintendo software which appeals to gamers of all ages and types. They're not trying for the core Sony/Microsoft demographic anymore which should be plainly obvious to anyone that has followed Nintendo's actions since the Wii initially was announced.
Things like Call of Duty are just icing on the cake on a modern Nintendo console when it happens on occasion. They're not what people are buying a Nintendo console for and the absence of many such titles that dominate on the competition aren't the reasons why the Wii U has struggled. Nintendo is failing because they're failing to cater to those categories I mentioned, not because they're not attracting Xbox and Playstation fanboys back to Nintendo.
They lost that war nearly a decade ago.
Edited by Leo_Ames - 11/12/13 at 9:44pm