Thats false, only the very popular Nintendo games have strong legs because Nintendo fans have no choice but to buy full price. But their less popular games do not have strong legs.
But this works well for Nintendo because they make a few strong games and dont have to worry about cannibalizing themselves with many games and lowering prices, which is why they dont care so much about third party games as they see them as competition. If you are an avid gamer, this is one of the reason why having only a Nintendo console its not recommended as their selection of games is very limited compared to the other consoles/pc.
TLDR one of the many reasons for lower prices in other consoles is the result of competition from many third party games trying to get a piece of the pie. Meanwhile Nintendo has almost 0 third party competition on their console which allows them to keep their prices up, not to mention they have a very dedicated fan-base.
Your tldr makes literally no sense. These companies do not exist in a vaccuum. Nitnendo is competing against Microsoft, Sony and PCs for gamers' dollars. Smash is competing against RDR2 for gamers' dollars. In this respect, Nintendo the developer is in the exact same situation that Activision, Square Enix, SIE, and others are: they want you buying their game and are competing against everyone else for their share of the pie.