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NATO said:

Consoles can't survive on first party titles alone, regardless of who the manufacturer/developer is. Without third party to fill the gaps you end up with big gaps in the release calendar where your userbase grows increasingly impatient.

 

You may not like to admit it, but it's true, Neither Nintendo, Sony nor Microsoft can be successful on first party alone.

Lets be honest here though Switch is not really going to carve out of a significant portion of console owners. Not many people are going to choose this over a $250 PS4 or XB1 next year. 

It's main audience is going to come from the base of 3DS owners.