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Cloudman said:
I guess it really depends. If their hardware continues to sell poorly (even worse than the Wii U) then going third party may be the only option they have left, although the 3DS has done rather well, so that isn't a necessary option yet. With the Wii being a really big success, that made them a lot of money. So perhaps the profits made from hardware sold is more worthwhile than trying to branch out to every device possible.

There's way too many things to consider, most of which I don't know, to simply say "One option is better than the other"

They dont have to go 3rd party. They can just make handhelds and stuff like Pokemon Go which seems to rake in most of the cash anyway. People keep bringing up Wii like thats Ninty's norm its not. Its there best selling console and thats still less a few other popular consoles. Why should Ninty burden themselves making weird home consoles in the small hope to get that Wii success?