With the rise of digital download game sales, it would be absolutely foolish for them to ditch the hardware business.
They have many options for the next gen of hardware. In the handhed space they could be making a variant of the handheld with smartphone functionality (like their own distribution of android). In the console space, there is a potential foray into VR, and since WiiU will have a shorter lifespan of current gen consoles, they could bring it first to the market.
One weaker selling console doesn't automatically spell doom for Nintendo. They have the resources to ride out at least two or even three weak generations. The stance against going third party only shows that the company management cares about companies employees and long term future. All the b***hing from investors and PS/Xbox gamers is getting tiresome. Times and times again Nintendo has shown that they can sell hardware almost solely relying on first party software.
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