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The cost to develop and compete on foreign software would damage Nintendo.

Nintendo more or less controls costs right now because they set the limits to their own systems and know from the start what they can do. If they have to learn new hardware adapt to it and compete against other third parties on a even playing field which they really have never done since the NES/Famicom then they are going to start off in a bad position early on. They might eventually come out of it but time and money would be loss.

Their best bet if ever going third party is sticking to just mobile or PC gaming, but losing face by going into hiatus as a hardware manufacturer still would damage them in gaining the trust of third parties and others in the future.