It would boost its performance which is why Nintendo should be working towards establishing some kind of a deal with them.
You missed the whole point of the injunction which was filed by Atari, not by Nintendo. To translate from Legal into English, Nintendo owned 80% of the gaming market at the time and releasing a game on the NES required applying for a license, paying a draconic fee for cartridge manufacturing and in the end you still had no guarantee that your game will even be published as it still had to go through Nintendo
"quality control". In other words, you had developers making software that never saw the light of day because they either couldn't afford to blow money away just to get the privilege of releasing their games on Nintendo hardware or were unwilling to bend over and simply made their own cartridges, at which point Nintendo threatened to sue. In the end, the Atari injunction fell through, however unlicensed cartridges continued to pop up and not much came out of it. The point of bringing up the injunction was to show that Nintendo owned the gaming industry and felt very comfortable then as they could steer it whichever direction they wanted, but that's not the case anymore. Besides, this isn't the only injunction and antitrust they went through. In 2002, Nintendo had to pay
a 149 million Euro fine for price-fixing between 1991 and 1998, one of the largest fines of that nature in history. It's common knowledge that their relations with other companies and developers are anything but friendly and cooperative.