They already said they were making a new console. Then again, Sega lied a few times before they went 3rd party.
Of course, Sega was hurting, Nintendo isn't. Sega had 25% of the market when it was released, Sony had 25%, and Nintendo had 50%. If a brand new system is getting killed by N64, and PS2 yet to come, Sega didn't look too good.
The rumors of Nintendo going 3rd party are started by Sony and MS fans, with no real basis other than their hopes. Financially Nintendo is doing fine, and as far as the marketshare is concearned, if Nintendo were to go 3rd party, MS should be leaving the industry entirely. It's a pretty stupid argument, people forget how well Nintendo is doing.
I just posted that article relating to the 3rd parties leaving.
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