Nintendo will live and die by their current business model. They are a platform where the majority of people are there for Nintendo games. A lot of the other content from third parties on the platform is shovelware. If anything the bigger threat to them is mobile which is why for a period they tried to break into that space.Those games will be what make subscription services feasible in the Long term. It’s why nintendo isn’t doing it
Many games aren't all that incredibly profitable now and are subsidized by the insanely profitable ones like the Call of Dutys and Fortnites, and Battlefields as well as other microtransaction filled games. That's why all these third parties are shifting to games as a service. The market is heading that way without subscription services as it has been.
Look at Fifa, Madden, and NBA 2K. They've become dominated by microtransactions. The single player GTA DLC was canned for more microtransactions favoring online content. Fallout 76 happened. Games are moving in that direction regardless. Sony kinda benefits from being the last bastion of the AAA single player focused games but eventually they'll scale that back. It was a response to market conditions at the time they increased focus on it but they're giving up too much money with such a heavy focus on that.
Look at all the other publishers. Microtransactions make far more than selling the actual games.