When you put it like that, yeah from Nintendo's perspective it makes some degree of business sense because the wii u failed so hard. But they should be thinking, why can't we sell at least 30 million plus home consoles AND 60 million plus handhelds. They havent forgotten that the wii before that sold like hotcakes in the home console space.
To just basically pull the plug on making a home console is turning their back on addiyional hardware, software, and licensing revenue. The success of the ps4 actually means this makes very little business sense imo.
They probably have been thinking a lot about it, and this is the conclusion they've come too. Sometimes, market conditions and outside factors change and create situations that out of a company's control. Nintendo can control the products they make, and in a market that is fractured across a variety of platforms and delivery methods, they decided this is the horse to race.