Well most people buy Nintendo product (consoles) because their first party games, but most people would buy PS consoles/Xbox because their combination of powerful hardware, service/online service/ 3rd party games and 1st party games (very few).
So i get it why people think Nintendo console has already obsolete especially after Super Nintendo Era. Consumer seem interested to buy the console mostly of Nostalgic games, and iconic character on some of their games (one of the reason multiple character used on their first party games) and their Quality is still the best of the best even compare to other games publishing and developer a cross the globe. But none (mainstream gamer non Nintendo fans) buy the console primary because their hardware capability.
While their games is become more and more recognize by many people as the best, the hardware speak differently in market , they indeed profitable but their market share is shrinking.
