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jarrod said:

Iwata said something along the lines of when Nintendo stops making videogame hardware, they'll stop making videogames period.  And they won't ever commit to a format they can't retain control over, they consider hardware a means to an end and working on someone else's hardware would provide fundamental obstacles to their internal development process and culture.

Sega, Hudson and SNK's falls from grace when moving out of hardware paint a pretty cautionary tale... 

Policies can be changed though. And Nintendo still would have a hand in the design of the machine, plus they would be in complete control of their controller.

Sega, Hudson and SNK are probably good examples of companies that fail to adapt in that case. I don't know the situation with their developers though, maybe some talented people left, I don't know. But some developers can still make excellent games for machines that are not made by their employers, loads of developers are proof of that in this day and age, and Nintendo should do fine, even if they don't have 100% control over the hardware anymore.