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Not a single company, Nintendo, Sony or Microsoft play a staring role in the industry, people just have the opinion that their favorite company does.
Truth is that the second any bow out another company would move to fill the gap, because filling gaps in a market is where the money is to be found, and money is the entire reason for the industries existence.

The day any of the three bow out would be a sad day, but just like when atari, commodore, sega and many others left the hardware industry, the world kept spinning and the void was eventually filled, move on 5 years and some remember the companies with fondness, others with glee that they are gone, and that would be true for any company, even sony, microsoft or nintendo.

As for nintendo "making the best games", thats entirely down to opinion, average score or overall popularity does not mean universally true, we are individuals and unless you bow to the peer pressure of wanting to fit into a particular social grouping, you will like whatever game you truly like, even if every other person you meet thinks its the worst game ever made.

As such, who makes the best games?, everyone does, depending on who you ask.