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I'm mixed on it. On the one hand, I think it could possibly improve Nintendo's first-party output by pumping more money into those studios than they have otherwise.
On the other hand, it just makes Nintendo more powerful than they already are. And right now, they are plenty powerful.

Lifetime Sales Predictions 

Switch: 144 million (was 73, then 96, then 113 million, then 125 million)

PS5: 105 million Xbox Series S/X: 60 million

PS4: 120 mil (was 100 then 130 million, then 122 million) Xbox One: 51 mil (was 50 then 55 mil)

3DS: 75.5 mil (was 73, then 77 million)

"Let go your earthly tether, enter the void, empty and become wind." - Guru Laghima