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JWeinCom said:
First off, Nintendo would have to pay a publisher fee for the games if they're not on Nintendo consoles. That's about 10-13 dollars they lose out on every copy. Games only tend to make about 20 dollars of profit per unit, so they would have to sell WAY more copies to break even. At least 1.5 times as many copies, and maybe double.

Secondly, Nintendo would forfeit the licensing fees they get. Wii U may not have been a huge third party success, but Nintendo made serious bank off of things like Just Dance or Carnival games during the Wii era. If Yokai Watch sells three million units on the Wii, that's about 20 million dollars in Nintendo's coffers.

Nintendo would also be forgoing all revenue from their digital stores. In addition to having to pay to have their own games listed.

There are other reasons, but ultimately, being a platform owner is far preferable to being a third party developer, if you can pull it off. The Wii U obviously hasn't been great for Nintendo, but making another hit like the Wii, or even a more mild success like the 3DS, would make waaaay more money than they could make as a third party developer.

Yeah. Plus, manufacturing systems allows Nintendo to control their specs, OS, and accessories, all of which are, traditionally, connected in meaningful ways to Nintendo's software. 

Anyway, here's a simple solution for those who have "moved on" from Nintendo systems but who still want to play its games. Suck it up and pay the $200-300 so you can play the games, or live without them. There, problem solved.