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lol It would take like 3-5 Wii U level failures in a row before Nintendo would probably throw in the towel, but they go through successful cycles as often as they do the bad ones, if not more often (DS, Wii, 3ds especially late, and now Switch) so Nintendo isn't going to throw in the towel for many, many years to come if they ever do.

The xbox brand, on the other hand, has had one successful device out of 3 (the original didn't sell well and the xbox one isn't going to sell nearly as much as the 360, imo) so it makes a lot more sense for microsoft to put their games on Nintendo devices going in the future. But the agreement will probably be that Nintendo has to create top of the line devices in the future otherwise all the "hardcore" games will simply go to playstation.