While these two things aren't strictly mutually exclusive, it wouldn't make much sense for Nintendo to pursue both. Nintendo doesn't need the extra horsepower to make great games nor does it need to compromise for third parties which are notoriously fickle and abusive. Microsoft and Sony have, over the years, made concession after concession to third parties to the point where each company is beholden to them. This is EA, Activision, Ubisoft, etc. we're talking about here. All those companies known for cynical business practices. Why create an environment tailored to them?
So the answer, for me, is strong launch lineup and continued, regular support for a system with moderate specs and a low price point. Nintendo continues to be master of its domain and fans get great software at an affordable price.
