How would you feel about the idea of Nintendo deciding to stop producing home consoles, and instead developing games that will be officially sold for and playable on PC, PlayStation and Xbox?
We're not talking about the 3DS or anything like that. Those are great. We're just talking about systems like the Wii and Switch.
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Even if they could become only a software developer, they might still be reluctant to even work with Sony. Especially after the debacle that was the Nintendo Play Station. That's right. The PS1 was almost a Nintendo console. But that deal went sour, and eventually led to the creation of the PS1. Also, Xbox does not sell as well as the PS4 in Japan, so Nintendo of Japan might not risk developing anything for it, leading to a drought of content.