Nintendo has impacted the gaming industry beyond just software. Its arguable, but they have been one of, if not the largest impact on both the console and handheld industries. So I ask, why should they become software only? Especially since they have shown, even after losing the support of nearly everyone, they can still come back and dominate practically by themselves.
On the flip side, ask yourself this. Could Sony or Microsoft ever survive in game development going software only?