I think you missed my point. I don't give a fuck about graphics really. I just know the market does to some degree they could literally port BotW to PS4 and probably win game of the year in most votes (still might now) without tweaking shit graphically.
The bottom line is that no other developers want to build for Nintendo's gimmicky, underpowered hardware. Nintendo could absolutely dominate sales charts on the PS4 though and release games a generation back in terms of graphical fidelity. I actually said game DESIGN in my original post. I said shit all about graphics. It's a shame that Sony doesn't have Nintendo games. Then people wouldn't be buying specialized hardware for a subset of 5-6 must play first party games rather than having almost EVERY FUCKING HOUSEHOLD available as a market with the do-it-all PS4. Not to mention the barely $100 difference in barrier to entry for the two despite PS4 being a significantly better investment. We aren't the deciders. We'll own all three at some point. The average family is. I bet they have a PS4 so dad can steal it for his yearly Madden fix.
For the record, I play most of my time on WoW, D3, Skyrim, and various retro games on old systems or emulators. The only thing cutting edge to even a remote degree in that list is Skyrim.
They'd make less money if they stopped making hardware and went 3rd party. Still in 2017 they make most of their revenue from hardware. It makes no business sense to go 3rd party - it only makes sense for non-Nintendo consumers.