It's kinda ironic though. Usually Playstation was the one who rejected "problematic" games from Japan but right now they're kinda ... calm. I don't know why Nintendo of America is the one's going backward this time.
I'm guessing, if the rumours are true that Microsoft are retiring the XBox series, it would leave PlayStation. And PlayStation will keep a broad interest for the sake of customers.
As for what's wrong with Nintendo of America, it's all Bowser's fault!

When Reggie stepped down, he hired Doug Bowser as COO. Thing is, Doug Bowser is a businessman first and not a gamer, which is why Nintendo seem rather detached from it's fan base of late.