This wouldn't have mattered if there weren't so many crap games. Nintendo addressed this by strictly limiting the number of releases, as well as having a thorough pre-release review process. Atari couldn't do that, since there was no way to police it, and anyway they wanted to shovel out crap themselves.
This is only true of Nintendo outside of Japan, and pretends that both Nintendo and Atari had some aversion to shipping crap games. Atari being able to limit third parties wouldn't have stopped ET, and Nintendo of America still published their own sweet of terrible games.
Also I'm not sure you read my whole comment -- anyway they wanted to shovel out crap themselves, refers to Atari shipping lots of crap games.
I don't think Nintendo released that many crap games to the US, and they also didn't realease too many, 17 at launch in 1985, 10 in 1986, 9 in 1987, and then fewer per year after that. Atari released 22 games in 1982, in addition to the flood of third party titles that were released that year.
So your explanation of how Nintendo fixed this problem was only important in half of their market, and Europe wasn't even facing the problem that they fixed.
Did you mean to write “suite”? (Or did Nintendo get into the candy business?)
Of course, it only got worse from there in the case of game consoles. The fun thing is that the current debt-based economy encourages this kinds of behavior.