Let me be the first one to say that the original post is a disgusting piece of pro-Xbox propaganda. I say this, because it is.
Valve is different because they hardly make any games to begin with. So no good reason to point them out as a good example.
Nintendo does have to answer to shareholders. In the past Nintendo did have to explain to them why they aren't laying off game developers. Their answer was that game developers are an asset necessary to drive future growth, because video games are central to the video game business. So if Phil Spencer was given the choice like the the original poster suggests, then Phil's answer should have been what Nintendo said.
Capitalism isn't the problem here. Microsoft's ineptitude at gaming, including everyone who works in the Xbox division, is.
Legend11 correctly predicted that GTA IV will outsell Super Smash Bros. Brawl. I was wrong.