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They may make more money in the short term, but it would not be wise for long term as the ability to release on tailor made consoles is what benefits the overall quality of their games.

Nintendo's best policy for long term results is what they appear to be pursuing today, limited releases on other platforms, such as Pokemon Go, while releasing the majority of their content on their own hardware.

Nintendo's wisest decision is to pursue a more Retro style of gaming in their content

Their recent showing of LoZ BoW (which focused on the massive open ended world to explore, one with lots of action, along the lines of LoZ 1 ) and the announcement of the Classic NES are good decisions in that direction, we will need to see if they continue in that direction (if they do, NX could be bigger than the original Wii)