If we "had" to live in a world where Nintendo had to give up something in order to survive, here is my prefered scenario:
Nintendo makes the handheld systems every generation. Sony, Microsoft, and Nintendo all have their games on Nintendo's handheld. Let's be honest people, Nintendo is epitome of success when it comes to handhelds, and have been like that since the beginning. Challangers have come, and have been destroyed. Nintendo continues to make money, and Sony's attempts to take them on have cost them a ton of money (why bother?).
Nintendo has a TONNN of reserve money (they could probably survive 5 generations of wiiu/gamecube sales before they start to go down significantly) so I highly doubt they will ever get out of the home console hardware industry, but if they did I honestly think their games could sell very well on the other systems (especially if there is no Nintendo system because then us Nintendo games would obviously buy one of the other consoles in order to enjoy Nintendo games).
