Being that Nintendo breaks with conventional thinking when releasing hardware constantly, I think there would be a massive hole left in the market if they became a software only company; in contrast, I don't see much of a hole in the industry if either Microsoft or Sony became software only companies.
With that said, I think the industry is healthiest when you have multiple strong companies doing very different things; and rather than encourage a company like Sony to leave the market, I would actually call for them to try to stand out in ways other than processing power.







