Plus they now have a billion dollar movie franchise, with probably more on the way.
Nintendo replaced its second pillar (dedicated handheld devices GB/DS) with movie/tv entertainment business.
They added Illumination’s CEO to their board, they bought that little film studio DynamoPictures, and they started a branch of their business to focus on films/tv.
Additionally, Nintendo is extremely shrewd with their finances and money. They investing wisely in more real estate and buildings for studios, they save a lot of cash and don’t over extend themselves, Switch will continue to bring in money through game sales for a couple of years, they are using their IPs a lot more now for merchandise…
Nintendo has so many revenue streams and are very diversified that they don’t really need two video game platforms anymore. They aren’t really that risk adverse when you take into account all their business endeavors. They can weather a storm if a piece of hardware doesn’t take off.
Also the NG Switch will have Pokémon, the largest IP in the world. It’ll sell.
Nintendo's gaming business makes up so much of its revenue that it's practically all of it, and movie and TV entertainment doesn't help much when the gaming business is struggling.
Japanese TV anime essentially doesn't make money on its own, which is why most Japanese TV anime production companies operate on a very tight budget. Newly hired animators are paid horrendously low wages, often less than $10,000 a year, and the only reason anime is still being made is to promote the original work, to drive sales. If Nintendo makes a TV anime, it's to boost game sales, and even if it makes money, it's in the tens of millions of dollars, not billions like Nintendo's game business.
The same goes for the movie business, which produces far fewer units than Nintendo's games, and has to share profits with Universal, which has to share profits with theaters. In fact, the success of the Mario movie was reflected in Nintendo's Q1 results, but it didn't have much of an impact. In Nintendo's financials, IP and mobile revenue, which includes sales from the Mario movie, only increased by ¥20 billion (about $140 million) year-over-year.
These facts suggest that Nintendo's movie/TV entertainment plays the same role as mobile games for Nintendo: it makes money from it, but not a lot of money, and its main purpose is to promote Nintendo IP.
Therefore, if Nintendo's next-generation game console falters, the entire company could be at risk.
Of course, Nintendo knows this, which is why they have so much cash on hand.