Imo it could work just fine. Since Nintendo can't rely on 3rd party support anyway, they could just ingnore them and develop a cheap handled device (I'd say an 199$ console), that can be connected to the TV and display WiiU-like graphics at 720p, controlled remotely with wimmotes and pro controllers. (by 2018 maybe it could be possible). It would be powerfull enough for an handled system, underpowered for an home console (but since when this was a problem for the Wii at all?).
Since they would only need to concentrate all their resorces on a single platfoms they could deliver a larger first party library, without dorughts. Yes this would mean less hardware incomes but also less marketing costs, less costs to make tools and to train developers. From the customer perspective, for a N-gamaer this could mean less money spent on hardware, which means more disposable income to buy N-games, for a non N-gamer a single console to gain access to all Nintendo games, whitout droughts + an handled console to pair up with a Ps4/Xbox3 would look more appealing than current Nintendo consoles (imo), for parents who whant to buy a console for their kids it's just the next cheap machine to play Mario and Pokemon.










