Nintendo is in a stronger negotiating position vs. game companies, if the hardware only accepts signed games. This makes it easier to get exclusive games, preve

Nintendo is in a stronger negotiating position vs. game companies, if the hardware only accepts signed games. This makes it easier to get exclusive games, prevents piracy(which encourages games to be made in the first place), and allows Nintendo to enforce standards across all games. Console hardware doesn't have much value by itself: Computers are plentiful, so if you just want something to run software pick up a Raspberry Pi or Nvidia Jetson. Their value derives from the games that companies make, so ceding power to the game companies(via Nintendo) makes your console more valuable.