They probably wouldn't even have to go timed exclusive.

Nintendo to MS "Our games will be Playstation exclusives unless we get to pay a smaller than normal third party royalty (let's say 3 dollars)"

http://www.zeldainformer.com/articles/a-deeper-analysis-of-nintendos-financials-why-they-cant-drop-hardware

See that and tell me your opinion!:P

Even in that analasys does it say that Nintendo doesn't make more profit from HW than they do from SW. They only make more revenue, which is entirely different.

Not really, the highest quality games in the industry come from first party developers. That's why games like Super Mario Galaxy or The Last of Us are so full of quality. The fact that developers can focus their efforts on one platform makes the games a lot better.

Games like Assassin's Creed don't meet that high quality standard since they are developed for too many platforms.

Nintendo third party would mean less high quality games from them.

I tell you the exact same thing I told Baloofarsan, they get more revenue from hardware than software, but software is still much, much more profitable.

I do not think Nintendo needs to think about quitting the hardware business at this point. I do believe they need to unify their platforms (this does not mean having one console, but their portable and home consoles should be cross-compatible to a certain extent in the future; or at the very least allows for easy porting across the two platforms), because right now it is difficult for them to handle developing for two distinct platforms at once and it will give third-party developers some incentive to develop for their systems again since they are targeting two systems with one piece of code .

However, hypothetically speaking, lets say their next-gen is a complete disaster (at which point I would say they should start making some tough choices; by the way, I consider them losing money again for a prolonged period of time a disaster not not being the number #1 in console sales). In such a scenario I would much rather Nintendo go second-party rather than third-party. Firstly, by clearly communicating to their fan-base that they have a targeted a specific platform they can avoid the issue of platform fragmentation (which is caused by fans dispersing to different platforms). Secondly, they would avoid the issues of porting, I read a comment above saying that Nintendo will get used to it, but porting will always be an additional cost and Nintendo has history of delaying games even on consoles they are familiar with (I am talking about N64, GC, Wii) so I expect developing for 2-3 platforms to take a huge toll on Nintendo.

Not just likely, pretty much guaranteed. They have to pay for the hardware they put inside the consoles lol.

I dont think this is true.  Games like Assassins Creed dont meet high quality standards because Ubisoft dont give a damn about shoving garbage out the door in order to make money.  There are literally hundreds of examples of multiplatform games going out and being polished.  Hell, even Ubisoft manage it themselves with titles like Rayman.

Nintendo going third party wouldn't meana drop in quality.  Nintendo would just do what they always do and release a game when its ready, not when some big wigs tell them to (even if its unfinished and buggy).

In a future, Nintendo will develop their games and upload in a Nintencloud. There, you can download to your NX Portable or your NX Console. In some decades, to your PC, tablet or smartphones.

Well that's why I think Nintendo should simply unify their console and handheld markets by making a single unified platform available in 2-3 different form factors (console, portable, tablet) that share a software library.

Games like Tropical Freeze, 3D World, etc. would sell much, much better if they also had the 3DS install base to sell to, so this fixes that problem and since Nintendo wouldn't be forced to make 2 seperate entries of all their major franchises they could now start to diversify and make new ip at a faster rate, increasing their chances of creating the next Pokemon or Minecraft style craze among children.