1. The money. -In the 80s they weren't doing so bad in my understanding.
2. No clue how to manage and Market; you're dead on there. Even with games like Castlevania, Mario World out and it was clear what style of games were the future, they nearly completely ignored it. Smart people being ignorant.
3. No install base- better games would have have helped with that. Motivated devs would have helped with better games. They had developers. Otherwise the retail library would have been zero. An offer to do the usual contract for the work then for 6 months or a year the devs get the full or half proceeds minus publishing.They would have to take a hit for survival. Also grab some of the 8bit titles., authors. Winston Douglas Wood. Pay Epyx to revive the Apshai series. Grab the author of that 8bit adventure game that supposedly inspired Diablo...
1942. They needed to update that. They need to update that now for the VCS.
This is all hindsight fantasy football of course but it's what I'd try if I had the Infinity Gauntlet.