But hardware is also very much is a strength of Nintendo... in the sense of their creativity and willingness to take risks (sometimes it pays off, sometimes not so much). They aren't about just taking the most advanced hardware and slapping it into a box and calling it a system like other vendors do.
Their hardware is innovative, look at how the Wii turned the industry on its head. 3D without the need for glasses or peripherals (3DS). Their controller design... look at the N64 and Gamecube. Look at the upcoming switch controls. There have been missteps along the way of course (Wii-U, Virtual Boy), but I guess it comes with taking risks.
The hardware is also robust. Even back to the days of the gameboy and NES you can still play these machines today. There are stories of people who dropped their system, lost their gameboy one winter out in the snow, and they still function come spring time.
I argue that the industry needs Nintendo, and not just as a game developer. They do have some of the best game IP out there; but, anyone that counts them out of the hardware race should be wary.