Overall, as long as Nintendo continued to pump out high quality and creative games than I wouldn't mind, my main objection is I'm worried that Nintendo would focus on just the select few mega sellers and stop developing some of their smaller, more niche franchises since they no longer have to worry about trying to provide a diverse library to sell their hardware.
Nintendo probably would have never funded big budget projects like Fatal Frame V, Bayonetta 2 or Xenoblade X if they were a 3rd party publisher meaning those franchises would likely have died.
Smaller games like Captain Toad, Rainbow Curse, Woolly World probably wouldn't be seen as worth the investment for only a million or so sales.
They probably wouldn't have outsourced spinoffs/crossovers like Hyrule Warriors, Pokken Tournament, SMT x Fire Emblem.
I have a feeling it would basically become Mario platformers, Mario Kart, Smash Bros, Pokemon, Zelda with very little else.
When the herd loses its way, the shepard must kill the bull that leads them astray.
