Nintendo already tried this kind of power grab, more or less, and it failed.
The NES didn't have software lockout in Japan. Most third-party Famicom[0] games were manufactured and sold by their publishers, with little or no control from Nintendo. Nintendo's way to wrestle back control over their platform was the Famicom Disk System, a disk drive add-on that was intended to work around the NES's 32k ROM limit (and associated costs of ROM) with cheaper disks that could hold up to 64k of loadable data per side.
The key was that the FDS had two lockout features that Famicom cartridges didn't:
- FDS disks had an imprint of the Nintendo logo at the bottom that meshed with plates in the disk drive. If your disk did not say Nintendo on it, it would not mount in the drive and the game would not play.
- FDS disks were rewritable, and Nintendo planned to sell games at special vending machines that would write you a fresh disk. If you weren't selling your game through Nintendo, your game wouldn't be on these vending machines.
So if you wanted your game on FDS, you needed to sign a distribution agreement with Nintendo. I'm told the terms were rather draconian. Most developers just... put larger ROMs and better enhancement chips on their third-party Famicom cartridges. This continued until someone figured out how to copy FDS games using just the RAM adapter carts and Nintendo gave up on the FDS concept entirely.
To be clear, Nintendo did have software lockout in the US, and you did have to license your game to Nintendo and have them sell copies of it using their hardware. This caused a lot of problems for NES releases of Famicom games that had custom chips in them (e.g. Contra). But even then, these were not perpetual licenses.
A perpetuality requirement would have killed any and all licensed games stone dead. If you're making a movie tie-in cash grab game on NES, you don't want to have to license that movie in perpetuity just because Nintendo demands a perpetual sublicense for a game with an expected shelf-life of about a year. Hell, not even Nintendo licensed Mike Tyson for Punch-Out perpetually.
[0] "Famicom" is just "Nintendo" in Japanese!