What Nintendo should do is have a special offering to third parties when they put high-quality titles on the system rather than shovelware. Less stick, more carrot.
We all know that console makers get a cut of third-party game sales. Nintendo should offer a significant discount regarding their cut if a third-party game passes their QA testing. They could offer a further discount if it's also an exclusive - but with a legal document stating that it must remain an exclusive for a period of, say, 2 years, otherwise the third party is liable for the regular fee on all copies sold, not just those after it stops being exclusive.
In addition to getting the discounted fee, such games (QA-tested, not necessarily exclusive) could also get a Nintendo Seal of Quality attached - other titles would not get such a title, but would still be allowed to release.
According to this image - http://latimesblogs.latimes.com/.a/6a00d8341c630a53ef0120a8b7438c970b-600wi - platform royalties come to $7 out of $60. Publishers get about $27. If platform royalties were dropped to $4 for games that pass Nintendo's QA, that would increase publisher revenue by more than 10%. Such games would be expected to sell in the order of millions, so you're talking about of the order of $3 million at minimum going to the publisher that would otherwise have gone to Nintendo. For an exclusive that passes QA, it might drop to just $2.
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