[N. Switch] Jimmy Fallon, hands on Nintendo Switch

TIL video game preference is objective

Maybe so, but that still isn't a fact. The Switch is a really cool and most importantly new concept. Maybe the sales of the Switch will go through the roof when it launches. Then the "console wars" (even though the Switch and XBOX/PS dont have the same target groups) would give Nintendo a push financially.

Even though you are right. If Nintendo would stop make their games console, it could help benefit Nintendo. (Look at stock prices of Nintendo since Pokemon Go) Nintendo has already started with supporting other platforms. Loot at Super Mario Run, its a start.

I think you are underestimating the benefits of selling on your own platform. Both Nintendo's hardware and games generally hold their value/pricing well over time, and the fact of the matter is that people will continue to buy their games for years despite this. If they were to take those games and offer them on Steam it would undermine & sabotage their own platform (exclusivity is absolutely huge) and sales that they make that would otherwise have a much higher profit margin per unit, and a potentially broader audience would not make up for this. Also, their games offered on Steam would have to compete discount-wise with everything else that is out there. Nintendo doesn't do 80% off, 75% off, or even 65% off. If you are lucky you will see 50% off on their first-party titles on occasion. And as I said, if the games are good they will still sell despite this. Oh and let's not forget Valve taking their massive 30% cut of sales -- a HUGE bite out of your profit margin. That's why Blizzard is not on Steam at all, because they know their games will sell regardless.

They would also have to confine their games to the simple control methods of the other consoles or the kb+m combo of PC. They are the only company left whose focus is to make video game consoles and to push forward how video games are played, instead of building a multimedia/social living room station that still uses the exact same dozen-button control scheme that was designed four generations and over 20 years ago. Even PC peripherals have evolved more than PlayStation/Xbox controllers.

...and it makes sense for them to do it. They don't have the resources of Microsoft or Sony, so they don't make units unless they know they will be bought.

It's a marketing strategy to build hype. Sony did the exact same thing with the PS4. They initially shipped only a few units, People heard there was shortages, got excited as fuck, then when Sony shipped the rest, they all ran to the shop and instabought one.

Honestly, given some of the stuff I've seen people say about it in another forum I use, I doubt the Wii U version will have any issue selling. It's amazing how many people claim to not see framerate issues.