Nintendo does what is best for Nintendo..that is why throughout the years Nintendo has remained mostly profitable, even on lower selling consoles. At the end of the day they are a business, and first and foremost want to make money. The main priority on Nintendo consoles/handhelds is that the hardware is tailor made for their first party games, and perhaps they dont give much thought for the 3rd parties. But thats the way it is, sometimes to remain profitable it comes at a price, and that is 3rd parties unfourtunatly.
If Nintendo made hardware on par with Xbone/PS4 it doesnt mean 3rd parties will suddenly fall in love with Nintendo and release every game possible. Nintendo cant take that risk or the losses, hence cheaper lower performance hardware, driven by their 1st party library of unique IPs, and we know..nobody makes games quite like Nintendo.
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