Segmenting the market by the job a given product performs is a logical unit of analysis
When you use it as one tool amongst a range of analyses, it's useful. When you adopt it as a OTTOE, it's got the same problem all OTTOEs do: a singular theory does not have sufficient explanatory power for everything, so you wind up just hammering all kinds of divergent situations into the right shape to fit them into the theory.
Also, spare me the business school just-so stories, please.
The points you make about people's favorite bands or buying luxury goods ignore the fact that products and services may also fulfill social and/or emotional needs, as well as functional needs.
But this is just again trying to loop everything into this single, rapacious, nuance-free lens. "Oh we're fulfilling
emotional needs! Let's do a focus group to see if our car makes people feel 12% more compatriotship towards their fellow man!"
Emotional connections to things are not
like practical uses. They don't follow the same principles, they don't lie down along logical principles. They are axiomatic where practical uses are derived. People who have an emotional connection to your product are yours to lose -- they have a vested interest in buying and delivering what they want in good quality is all that's required to tap that interest. People who have a practical connection to your product are definitionally unreliable -- they will cut you out in a second as soon as they see a better solution to their issue. Nintendo's expanded-market push was entirely about selling DSes and Wiis to people in that latter category.
With regards to Mario Kart, the emotional attachment lies in the fact that the Mario Kart brand has repeatedly succeeded in delivering arcade, kart racing, multi-player fun, which is a job that some 30 million people apparently value highly.
Trying to push past the PR wording here, all that you've said is "Mario Kart is a game. People buy it because they like a certain type of games, Mario Kart is a good one of that type." Again, hardly a meaningful analysis.
NSMB, MK, even AC -- these are products designed for people who are already familiar with and historically invested in games (and/or children who are presently becoming so invested), using a visual and kinetic language developed across other games, with a purpose that is solely focused on the play experience. Nintendo are
obviously well-suited to this; it's their entire reason for existence, their only core competency, and the singular thing that they've worked to be good at for decades. They will obviously retain a huge ability to do this basically as long as they exist.
The issue here is that Mario Kart also has nothing to do with Nintendo's expanded-market push. 100% of Nintendo's "find new markets" push was about selling hybrid software that combined gaming elements with more practical purposes -- and it's precisely these areas where Nintendo no longer has any advantage against their competition, and which you just keep refusing to engage with every time you respond.
I made an offhand reference to comics in my last post. I did so because, as many others have noted, there are many similarities between the comic book industry (particularly during the 1980's) and the video game industry today. Without digressing too much, I will point out that the number of people that care about comics as a thing shrinks every year.
Comics are actually a perfect example of what I'm talking about: comics fandom has stubbornly clung to life through decades of mismanagement, and even the (increasingly huge) crowd of people that have been driven away through that mismanagement and downright offensive behavior on the part of the industry can get sucked back in by the empty promises of a marketing event like DC's reboot -- just because people are so deeply attached to what the product is.