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Yes they'd sell an absolute ton more. The hardcore that currently buy Mario, Zelda etc would move to one of the new platforms and it would be very appealing because you'd have your Nintendo games + all the other games to chose from unlike before.

On top of that Playstation, Xbox and pc currently have a lot of fans who used to be Nintendo fans when they were younger. I definitely think Nintendo would win a lot of them back by coming to them rather then expecting them to buy a new console to return.

If NX bombs I'm sure this will be a possibility but Nintendo unlike Sega have a big cash pile so they'd probably be stubborn enough to try another gen. Although their stock would probably take an absolute hammering.