Versus the reasoning behind nintendo should keep making hardware? It's not grounded in reality anymore than the other side. 

You probably shouldn't be disparaging anyone's knowledge of video game history if you don't know about Nintendo shutting out competitors in the NES era.

"This resulted in a number of lawsuits brought by both the public and private sector, and in 1992 Nintendo was found by the New York state court system to have established an illegal monopoly on the U.S. video game market.  Nintendo's first response was a modest relaxing of its licensing restrictions, in which a developer had to wait at least two years before porting an NES title to another system.  Unsatisfied, the American and Japanese governments eventually forced Nintendo into abandoing such tightly exclusive contracts altogether.  Unfortunately for Sega, this legal intervention came too late to save the SMS, and left it without the library of games it could have had if not for Nintendo's ruthless licensing tactics."  Service Games: The Rise and Fall of SEGA: Enhanced Edition

If you don't think that would hurt Sega and NEC then why would you worry about Sony buying exclusives?  It's the same thing, except one makes third-parties happy while the other just makes them disgruntled.  In the end, most third-parties came to Sony simply because of all the other factors, like programming support, lower fees, and cheaper game production. 

As for your last question, if Nintendo doesn't want to spend their money then they don't have to.  They can leave it in their war chest all they like.  As you've pointed out, they have a lot of it.  But, as all business people know, sometimes you have to spend money now to make money later.  Sony can't even come close to matching Microsoft but they haven't held back on the PS4.

That's not really the issue, though.  Nintendo spent $100 million in marketing for the N64.  They didn't lose ground because they spent less money, they lost ground because of bad decisions.

Besides the fact that they ARE still making hardware?....

The were forced into it. Look at any of the big third party publishers and they sell just fine. Nintendo has the money to develope plenty of games at their own pace. Nintendo could do the same either way but more than likely they'll do well as a third party publisher. 

Same. Hardly see any Nintendo is doomed posts or threads, but VGC is the only place I get gaming news from so I guess that's why. 

How's that working out for nintendo? As I said, "not grounded in reality anymore" than the other side.  

With home consoles. If they're unwilling to adapt then yes. I think that it's hardware is what's holding it back from making more money. Their brand is still strong and their IPs are still popular. 

To be fair here, and expanding over what I said on my original post, I think the most Nintenhate I've witnessed was this modern Nintendo post-Gamecube. Wii's success was met with escepticism and denial here and there (remnants of this attitude still persist up to this day, and can be seen on certain biased data or opinions), and while I do not think it's something Nintendo can (easily) replicate ever again, it shows the potential Nintendo hardware can have on the market. Old-school Nintendo, I really don't remember all that much hate (or dislikeness at all except for the "battle" with SEGA and company), and that coming from someone who used the internet (albeit I was mostly on Spanish non-gaming forums) back in the day. Nintendo at least really dominated my school and town. Everyone and their mother had a Gameboy and a Nintendo home console (not me, though, because fuck being poor ). By the time the musical group Estopa started promoting the Nintendo DS, any trace of hate at that point was beyond gone. And the Wii? The craze hit hard here. It was not until the hype died out when these Nintendoom really started making its presence. I really don't remember all that doom on VGC either except for these last years.

This being said, I myself became a bit disenchanted with the company, especially on the late Wii years; their first party-output hasn't really been to my liking ever since, and it's incredible to say that the only reason for me to get a WiiU at this point is due to its third/second party software. Hope NX can do a bit better.

Only 5? 

Filthy Casual.

Anecdotal evidence.

NX Will Flop Hard imo
nintendo will make more money when they go third party