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Pyro as Bill said:
If Nintendo goes third party then third parties will be have difficulties because they'll have to compete with Nintendo which is bad for third parties.

Eventually Sony/MS would only have 1st party and Nintendo titles and Nintendo's console would only have 3rd parties assuming Nintendo didn't make 1st party titles for their own system because they don't want to upset 3rd parties. If Nintendo made games for their own system then 3rd parties would be forced to compete with Nintendo on every system which is really bad for 3rd parties.

In time this would leave Nintendo as the only 3rd party developer because 3rd parties don't like to compete with Nintendo games which means Nintendo would have all the third parties.

LOL