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The conclusion that the OP makes, that Nintendo shouldn't get out of the hardware business because their past consoles sold well, is an absolute joke.

Sony TVs used to sell like hotcakes as well, does that mean that they shouldn't get out of the TV business/completely overhaul the way they're handling that business at the moment?

There are certainly arguments that can be made for Nintendo to stay in the hardware business, but "they used to sell really well" is literally the worst point you can make for that.