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potato_hamster said:
It matters to Nintendo as well. They need to demonstrate to their shareholders that making hardware is still the most profitable direction for the company to take. People seem to fail to understand that the amount of money they have in the bank, or breaking even, or even maintaining a small profit is completely irrelevant. Nintendo has shareholders and their executive branch of Nintendo is beholden to those people to maximize the profitability of that company.

I agree, people seem to just say "But if they still make a profit they'll keep making hardware!". But in reality it doesn't work like that. If there is a MORE profitable avenue for them to go down, they may take it. It's about achieving the most success, not enough success to keep doing what you're doing.