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You're wrong, and here's why.

Wii sold 100m, that's 100m potential customers.
PS3+360 sold 162m and still selling strong, that's 162m+ potential customers.

Now let's look further back.

GC sold under 22m
PS2+Xbox+Dreamcast sold 190m

Where do you think Nintendo would have sold more games if they had been third party during these times, and remember, had Nintendo not been around in the hardware business these numbers would be even higher.

Digging deeper,
N64 sold 33m
PS1+Saturn sold 113m

In all of these instances Nintendo would have sold significantly more than they did on their own platforms as their own fan base would be there along with the canvases of both other systems.

Nintendo could keep going with their handhelds while being third party if course but even that is bound to change as markets shrink and others expand.

You can argue that they won't and give numbers for none Nintendo games all you want, but the fact remains these numbers are for non Nintendo console exclusives without factoring in the increased rates a larger install base and multiplatform nature would have.

3rd parties go multiplatform because that's where the money is, unless a first party holder subsidised the exclusivity well enough to negate the loss.

Of course, if you're trying to tell me GC games would have sold worse on consoles with 168m potential customers then I don't even know what to say to you.

Oh and just for fun?
WiiU 5.3m
PS4+XOne 7.5m
PS4+Vita+XOne+360+PS3 177m (if they did what current games are doing and bridging the generation)

Where would wiiu games have sold better?, 5.3m install base or 177m? Plus the sales of Nintendo branded peripherals for these games.

And frankly your argument that Nintendo fans don't want to pay 400-500 is absurd, most of them have a second console along side their Nintendo console anyway, so the majority would be saving money, money better spent on games.

Being realistic about Nintendo and the WiiU doesn't mean I'm a Nintendo hater like you claim, it just means I am not a blinded Nintendo fanboy who rejects reality to suit his opinions.

There's a huge difference.