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They prioritized it once: For the launch of the Wii U.

The Result: Nintendo's worst-selling home console because all they did were shoddy ports or second-rate titles, not system sellers, hence why the sales cratered and never recovered. Afterwards, Nintendo had to do it all alone, with just the help of indie developers and the occasional Ubisoft title.

So yes, it was smart, but only to some degree. Nintendo needs to bring their first-party line-up and can (and should!) go from there to bring all the other publishers on board, because only having one of the two components (AAA publishers or first-party titles) is poison for Nintendo console sales.