Do you guys think Nintendo would actually make more money by being a 3rd party software maker and just selling all their games on all consoles and maybe....gulp....pc? They could still do their handheld devices but for christ sake, give up the consoles already.
I'm pretty sure every gamer on the planet would rejoice if they actually went this route.
This question gets asked over and over again. So let's say it happened. Here's how I would imagine it:
Nintendo makes a killing in game sales for about 2 to 3 years or until every historic IP has had its next iteration (Mario 3D 2, MarioKart 9, Bayonetta 3, etc.), whichever comes first. It's a smashing success, but for the first time, some Nintendo games have some noticeable bugs.
But at the same time, NX sales tank because there's no need to purchase the console; Playstations, Xboxes, PCs, and tablets/phones play the games well enough.
Nintendo loses its hardware presence in the home, that reliable, family friendly unit, hanging out somewhere around the TV for over 3 decades.
Nintendo resigns itself to games only. But when it puts out Mario 3D 3, MarioKart 10, and Bayonetta 4, it's not the same world-wide event, there are simultaneous releases of competing games (now in direct sales competition because there is no console exclusivity), and the Nintendo games don't sell as well. Making matters worse, a couple of the games have even more severe bugs because Nintendo can't control the hardware.
At that point, Nintendo is at best a Blizzard that never had WoW, and they decline until they are bought by some media conglomerate. Then the autonomous and historic Nintendo is dead.