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.
Okay, so you want them to go after biggest audience correct and 30% of the cut will go hardware developers and focus on competiting with the best developers, ya sounds like you want them to go full mobile. Which they are honestly on there way, switch bombs, nintendo goes that route.