Is it hostile? Absolutely. Microsoft and Sony are tech giants. However, to stay alive in this market you need to compete. If Nintendo releases a console with the same mandatory features as the next Xbox and PlayStation while improving YouTube policy and marketing, Nintendo could very well dominate. Not only would they regain third party support but they'd also be Giants in the industry because of their God tier first party games.
Someone please explain to this guy what loss lead means.
Okay I will.
Let's compare the PS4 and WiiU in 2014. Every PS4 that is sold loses Sony money. Every WiiU that Nintendo sells gains them money. For Sony, this is called a loss lead. By losing money on systems, in theory they gain money through software due to a larger install base (more people who will buy the product).
The top selling PS4 game in 2015 was Call of Duty: Advanced Warfare. It sold 5.5 million copies. The top selling WiiU game was Mario Kart 8. It sold 4 million copies.
That's 1.5 million more copies for the PS4 game, selling more than 35% than the WiiU game. However, the PS4 has sold twice as much as the WiiU. 35% is nowhere near 200%. Going down the list, WiiU games sold pretty favorably compared to PS4 games. And without taking a loss on the consoles.
If you still don't get the big picture, the best selling game of 2014 was ORAS. That sold 7.4 million copies. More than CoD, but, again, the 3DS has sold 2.5 times more than the PS4. Selling 2 million more games wouldn't mean dick for Nintendo if each of the fifty million 3DS systems they sold had lost them money.
For Sony and Microsoft, video games in general are loss leads. These are companies that make their money off of televisions and computer software respectively. Graphic fidelity in video game consoles, not to mention the constant attempts at turning game consoles into "home entertainment systems", is all about image.
Nintendo stays competitive by making good games, and by restricting those games to one console. Until the day comes that people don't actually want to play video games, or until Sony/Microsoft care about making them, Nintendo won't be going anywhere.