Nintendo did great with doing both before the Wii.
Basically it was about managing various second party and external developers but the fact is with this generation, many of those developers are striking out on their own via digital distribution or folding due to not being able compete or meet Nintendo's stricter development demands on time and budget. Nintendo could easily do both, but they are focusing their main teams on proven successes (Mario, Kirby and Zelda games), having the smaller ones work with smaller portable projects or research and development.
Other notable second parties are usually either on loan for other projects (Monolith Soft and Project X Zone) or have to get used to new hardware requirements (hence why Camelot and Intelligent Systems have been fairly quiet over the past few generations outside of portable projects or sequels).
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