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Well there were some statements by Yamoichi (i think i got his name bad) that if the GameCube did really bad it could be nintendo's last console and they would focus on software only.(after all, software is what made Nintendo bigger then Sony, not that Sony made it that difficult)
Anyway, there were also plans that Microsoft would accuire Nintendo, a part of the deal was that Nintendo had to stop all hardware development at once. (i think they were making the GameCube back then). Yet that did not happen either, and Microsoft ended up making their own console, buying Halo and buying Rare. (buying Rare wasn't the brightest idea ever, but Nintendo made a very (very!) nice deal there)

So you could state that if both the Nintendo DS and the Wii would all of the sudden show negative sales for the next 5 years, Nintendo would probably have made its last piece of hardware and focus only on Software.
Don't forget that Nintendo is N°1 in making the best AAA titles out there. Not that they made all of them, but just most of them. They also keep making new franchises that are extremely succesfull. And i think this will last as long as Shigeru is a part of Nintendo.

Another piece of memory is that the Nintendo DS was not supposed to be the follow-up of the GBA. They were making a GBSuperAdvanced but since the DS had such succes they cancelled it. (i think...) But if you see that the DS software is just skyrocketing, i would not expect they try to compete with themselves.

As a last point, i want to point out that they were looking into a graphical superior alternative to the Wii. They had a kind of multicore idea too and said they were still deciding what do do. After all i can expect that it can be a hard decision to bring out a console with just a mere hardware update and a remote. But they did, and did it good.

Thats what i like about Nintendo, they always have a surprise ready. I don't know if they will be able to keep it up the next time around but in the meanwhile its great to pick up a game thats not giving the "Week 27: 27th game thats about shooting an enemy thats either alien or german and has better graphics!" At least Nintendo tries to innovate, and i think they will try as long as we don't stop them. But i'm not planning to stop them as long as they keep surprising me and are cheaper. (however i think the DS lite could be sold at 100€ if they really wanted)