How is coughing up revenue to hardware publisher making them do better? Bigger audience? More microtransaction competition in terms of publishers?
They also lessen their costs, like Sega did after the Dreamcast.
And yes, their gain of audience would be insane.
Nintendo games on PS4/XBO/PC would mean so much more people having access to it.
Pokemon Go and Mario Run just made even more people aware of those franchises, imagine quality mainline stuff of those everywhere.