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I hope this hypothetical isn't based on the fallacy that Nintendo was at risk during the Gamecube era. One look at Nintendo's financials throughout the past ten years and you can see they were more profitable than Sony's games division every year but one since the inception of the Playstation brand.

If for whatever reason they did not continue their home console brand then I think they would have focused exclusively on the handheld market for now, I don't think we are ever going to see Nintendo making games for anyone else.