Nintendo is just too conservative but when MS entered the business I think Nintendo made a concious choice that MS is such a massive company that dwarfs them in spending power that from there on in they weren't going to try to compete head on anymore. So if say MS did things like woo third parties, Nintendo stopped doing things like that almost entirely (aside from a few Japanese collaborations). If MS was going to emphasize online, then Nintendo's philosophy became to not do that. Etc. etc. etc.
Nintendo stopped really getting 3rd parties the gen before Microsoft came along...
Bet Shiken that COD would outsell Battlefield in 2018. http://gamrconnect.vgchartz.com/post.php?id=8749702