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They're far too big of a company to go software only.

They're a $25+ billion company, to put that in perspective, Rockstar is like a $1.5 billion company even with the no.1 third party franchise.

They're also just spent a ton of money on a giant new development center in Japan (new office for Intelligent Systems too).

Nah, third party ain't happening, it would mean they probably would have to start laying off staff and downsizing the company considerably just for the sake of maybe selling 20-40% more Mario games (maybe).

I think it's more likely they would accept an alliance with a company like Apple or one of Sony or MS (exclusively) in which they would still perhaps make their own hardware in some ways. Simply going software only is a non starter.