WOW
I just watched the video and saw the pics for the first time. WOW.
Far as I'm concerned, Nintendo has a winner here. I haven't been this excited about a Nintendo idea since Mario 64. The first-party games for this will be UNBELIEVABLE.
And with that said, this DOES NOT AFFECT their third party situation in the least. That's WHY they have a second set of controller ports for Wavebirds, etc... Their third party situation will likely be about the same as it was on Gamecube, which is "okay", not terminal, not great, but "okay". But I think that the best first-party Nintendo games EVER will come out of this idea.
Who do I write the check to?