People keep bringing up that Nintendo had enough money to weather more Wii U style flops. Which may be sort of true, but the question is, whose money is it?
The answer is not Nintendo itself, but Nintendo's shareholders. And the shareholders don't own Nintendo stock just because they wanted to own a piece of Nintendo's cash pile. They own the stock because of their belief that Nintendo will use that money to make more money, which will come to them via dividends or increased stock price.
If someone is using your money to do something that they are repeatedly failing at, you're not going to want them to keep doing it. Stockholders would definitely have demanded a change in strategy, likely to a third party developer strategy with a big focus on mobile gaming (not necessarily saying that'd be a good thing, but that would likely be the thinking). Or, they might want to just cash out entirely. Of course, they could just sell their stock at market price, but if they want to get the most money for their stock, they'd want to find a buyer who thinks Nintendo is worth way more than its current selling price. Considering Nintendo is a company that has a huge amount of intangible value, it's not hard to imagine there would be companies that think they can get more money out of Mario and Pokemon than Nintendo was making in the Wii U era.
Nintendo wouldn't go bankrupt, but it's not like monopoly where you just play till you run out of money. Nintendo as we know it would likely be done. It would have been a prime target for a buyout.(although there may be some Japanese law that would make less likely than if they were American). Going third party would also be pretty likely. Or both of those things.
So, I'd say make or break is a fair assessment.
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