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As long as Nintendo has to face competition like Sony's Vita I doubt it will ever stop making hardware completely. They might pull out of the console race if that becomes a waste of money but they still own the handheld market and it's not looking like that'll change any time soon.

If they do step out of the console race I think they will develop for their own handheld only. So no more console Nintendo games.

I doubt that will ever happen though, even the GameCube with it's 21+ million units sold was profitable to Nintendo. Compare that to Sony for example who are still hurting even though the PS3 has sold almost 4 times as much as the GameCube now.