Comparing Nintendo's first party to... anyone else's first party is foolish. Nintendo will always have the top sellers - they're the only company that really has worldwide, "everyone" appeal. Super Mario 64 outsold the PS1's top seller (GT). Mario Kart 64 outsold the PS1's second best seller (FF7). In America, the N64's dominant region, it held 4 of the top 5 selling games, even though its userbase was half of the PS1's!
Nobody can compete with that.
Now, the question is, is this necessary for a successful console? The PS1 and PS2 have me believe otherwise. Besides the GTA series, there weren't Nintendo-sized hits on the consoles, but they still did very well. The third parties can make the console, and the PS3 is still getting support. Their exclusives are about on par with the 360's, so the main issue now is the price.
