I think removing third parties from Nintendo consoles Sony made Nintendo as a company stronger. In the end of day everybody wants to experience the best games of each console that matches your own favorite tastes and favorite genres
Thing is that the best games of each genre on Nintendo consoles happens to be... Nintendo games. No other manufacturer (or any gaming studio for that matter) have a collection of games of almost any genre like Nintendo does, Nintendo is willing to do so because their consoles can be often so devoid of strong 3rd party support that they need to fulfill the niches by themselves
The inability from MS and Sony to build games like that lead Nintendo to crave a market where their main competition seems to be indies instead of MS/Sony games. Microsoft doesn't care because they see themselves as service providers, but Sony is strongly changing this mindset although their games are failling to be eventful and getting more widespread attention You can't deny they are doing a very good job lately with games like Returnal, Astrobot, Little Big Planet and Detroit. Sure their list of genres and gameolay covered still modest compared to Nintendo but now Sony understands the importance of having strong in house production
