A 2013 comparison from Wikipedia.

Nintendo has 5200 employees. Revenue was 6 billion.

Electronic Arts has 9370 employees. Revenue was 3.8 billion.

Activision has 7061 employees. Revenue was 4.6 billion.

These numbers are outdated but it shows that Nintendo's revenue would significantly decrease as a third party publisher.

I mean EA and Activision with their DLCs and microtransactions still didn't make more money than Nintendo. This was both The Wii U's and 3DS worst year, yet despite having less employees than both, they still had more revenue.

but they would do so much more profits

Most likely.

They'd get a smaller cut of software sales and all hardware sales going poof.

They'd need a drastic increase in software sales to offset that loss.

Revenue doesn't equal profit though. Keep that in mind.

Convincing argument. Should we compare the profits Activision has been making the last couple years to Nintendo?

Are you sure about this? Mario on multiple platforms as well as full blown Pokemon RPG could be huge. I'd LOVE to see the power of Metroid Prime on PS4 or Xbox One too!! Fire Emblem, too! I'm sure I've missed a few titles, but Nintendo has good stuff though I'm not digging their consoles since the Wii U...

No shit. Hardware profits + Software profits has given them all the assets that they've amassed over the years.

Yup. They should keep making hardware. But they need to embrace community. Some of their decision are just anti customer like region locking and not listening to developers. Being thrid party is worse than bankruptcy.

Pretty much.

Hopefully they embrace some big changes come thier next major hardware release into a next gen.

What good does it do to have 6 billion in revenue, if expences are greater than revenue?