Actually, Nintendo staying first party is for the good of the rest of the industry.
First, every third party would have to compete with fkin Nintendo! You'd have almost no chance releasing a kart racer, a platformer, or a Zelda like adventure.
Second, the side who'd gain Nintendo's favor (Sony or MS - more exclusives, better features, etc) would have a dead serious situation in their hands.
Another point is that they'd suck up so much money and sales from companies like Ubisoft, Capcom, EA, etc that more'd have financial problems, even closing down.
If anything, Nintendo should go handheld only, and strengthen their position there.
My themeforest portfolio:







