what if i told you one of your favorite bands was having a concert. it was going to be cheap. it was going to be amazing. the only downside is that the entire event the air smells like stuff. the stench of feces constantly running through your nostrils and there was no way around it. the feces stench atmosphere also happened the previous year. and the year before. but the concert is still cheap. since the concerts cheap, you basically get what you pay for. but your band will never play somewhere that isn't a stuff hole, so you have no better options. now other bands have concerts too! the atmosphere doesn't smell like feces either! well, at least some of their concerts do not. but for the concerts that do smell like stuff, its cheap entry. but your favorite band always plays in a cheap, stuff-smelling place.
my point is that nintendo in this scenario is your favorite band. your favorite band, nintendo, plays the best music (best games). but of course are limited (nintendo-console exclusive) to the stuff-smelled atmosphere (under-par hardware). if nintendo raised the price of their concert tickets, they could afford a place to perform that didnt smell like stuff. (put better hardware in their systems)