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They would sell well at first but the costs of developing on other people's hardware would ultimately mean Nintendo like Sega would limit their experimental/niche games, so we would get a lot of Mario spinoffs, a Zelda or two and fewer everything else. If they went the mobile route, they would start releasing cheaper games with less depth due to budget issues and "free 2 play" games built around milking people.

Nintendo itself may survive but it will be a shadow of itself and people would still bitch about its games being the same but this time they would be correct.