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This is why people should give up this notion that somehow Nintendo would be even more profitable if they went 3rd party. In the history of videogames, no previous manufacturer/publisher has given up their platform and done even better for themselves. Not one! So why all of a sudden would Nintendo be any different? People act as if Sega wasn't on the same level publishing wise as Nintendo, but they might have been ahead actually. Back when Sega were making great sports games and racing, they always turned out better than EA's offerings. Things like the Sega channel was a service way ahead of its time and worked great considering the technology available at the time.

 

Neo Geo- made SNK's software relevant 

Sega's consoles made their software standout 

Atari- hasn't added much since they left the hardware business.

 

Most of these companies only make very obscure titles or use licensed properties such as Sega with Aliens. But they are all just empty shells of what the companies use to be and the same thing would happen to Nintendo.