no updating and refining their verification to add additional checks wouldnt mean all existing games are useless, think of it like this currently 3ds says "hello are you NDS or 3DS card?", card replies its type, next it says "ok so whats the secret password "card supplies secret password check" 3ds says "ok very well come on in"....now that nintendo knows that this has been cracked they just look for inconsistencies, this can be various thing....so lets just say they notice the fake card takes 2 seconds to reply with the password, and real card reply within 1 second, all they need to do in that case is change the verification to only accept the password if its given within 1 second of asking
again just a general idea of how they can improve their existing verification in a way that still works for all existing cards but effectively blocks the fakes as they aren't quick enough
I don't think you understand what I meant. Taking your analogy, as far as I know,
If Nintendo changes the "password"/looks for inconsistencies, They would have to do more than just a software update.
See every retail cart is pre-programmed with the current "password" per se, So hardware-wise, Nintendo can't just go and update the password without rendering current carts inoperable. They'd have to pre-program a new "password" onto new "carts". This was the issue they had thought they addressed with the 3DS after the NDS piracy mishap.
If you think that they could just use software via game updates to give a new password to the retail cart, heck even Sky3DS enables online features so this isn't possible.
tl;dr, retail cart is a lock that cannot be changed without changing the lock itself. Once you have the key (How I assume Sky3DS' exploit works [spoofing a retail cart]) The only way to make the key not work is by changing the lock in it's entirety.
Disclaimer: This is what I know. If it's wrong, fix me.