With reputation I am assuming you are alluding the the Xbox. You need reputation, sure, but what companies ultimately want is money. Rep is a means to an end and that end is money!
Nintendo is consistently in the best position therefore. The worst that can happen to them is that they could be marginalized. Nintendo can make heaps of money selling their own console at a profit and making their own games. 3rd party support is gravy that draws in some profit but makes more people but their console.
If Nintendo's next console completly failed and got no support, Nintendo would likely make the 2nd most money still.
Therefore, the only way Nintendo could ever stop making consoles is if it was more profitable to make games 3rd party then to profitably sell hardware AND sell their own games. Considering Nintendo has 10 million or so fans who will buy their system just for their games, this will only happen if Nintendos quality takes a nosedive, and if that happens any game company is screwed.
