According to analysts, the irrelevance of Nintendo is imminent. Michael Patcher, among others, claims that Nintendo will fail to be relevant from here onwards. However, I beg to differ.

1.       Nintendo has positioned itself to be the early market leader for the eight generation console

Nintendo being the early bird in the console race is crucial as in order to attract third-party developers, one needs the necessary install base to justify the investment. One has to remember that the PS3 had little support during launch as developers were still flocking towards the more popular gaming system and safe investment, the PS2. History is repeating itself once more as developers are being cautious and want a return on their investment. Hence why Nintendo positioned itself to be first on the market, grow the initial install base and offer third party developers a more attractive investment opportunity compared to once Durango and Orbis hits the market in late 2013.

Contrary to popular opinion, Wii U’s first week sales were favorable. For comparison, according to industry tracker NPD, the Xbox 360 and the PS3 sold 326,000 and 197,000 units respectively in its first two weeks on sale and doing so, prior to the recession. The Wii U achieved that feat in less than a week (425,000 units in one week).  - http://arstechnica.com/gaming/2012/11/wii-u-first-week-sales-lag-original-wii-but-better-than-xbox-360-ps3/

Thus, calling the Wii U a failure is evidently false.

2.       3DS is growing rapidly

For starters, the Nintendo 3DS is no longer being sold at a loss. Furthermore, the 3DS is the current market leader for the handheld market and is selling at a decent pace, even more so in Japan. 2013 will be the year where the 3DS expands greatly, let me explain why:

In Q1 of 2013, Monster Hunter 4 will be released in Japan exclusively on the 3DS and will most likely set records for the 3DS much like previous titles did for the PSP. In Q1 of 2013, Fire Emblem, Castlevania, Etrian Odyssey, Monster Hunter and Luigi’s Mansion Dark Moon will be released in North America thus helping move both software and hardware sales. Furthermore, Animal Crossing New Leaf will also be released in Q2 of 2013.

One can also expect a Pokemon title from Nintendo (Ruby Sapphire 3DS remake), Bravely Default, Monolith 3DS game, Super Smash (maybe), new 3DS colors - bundles and a new 3DS model (maybe), and much more to come.

Hence, I can see the 3DS moving many units in 2013, much more than 2012.

In conclusion, although there is a cloud of uncertainty that seems to follow Nintendo, the big N has positioned themselves well for 2013.

I would like to hear your thoughts, what do you think of Nintendo’s prospects in 2013?

Well positioned for 2013, yes, but not for the following years.

They are positioned well, and I did buy a wii u. The question is whether nintendo can capitalize on it. Right now there isnt a whole lot of games out or anounced that really differentiate the wii u. Nintendo needs to agressively seek 3rd partysupport. Especially in the rpg and shooter genres as those genres have the most appeal to the avid gamers who are essential to the early success of console hardware...

did pachter really say nintendo will be irrelevant soon? geez what a moron. even if nintendo manages to not sell as good as the previous gen or outsell its competitors nintendo will always stay relevant to the kid/young teen market. they are in the best position of all 3 companies to cater to that market and their brand name alone will always sell to them. its possible that nintendo will never have the success with the wii again, but that doesnt mean it will become irrelevant

The jury is still out, to be honest. There is nothing wrong with the Wii U's early numbers, especially considering supply constraints, but I think we still need to see how multi-plats that release on all three systems at once fare on the Wii U. People who want multi-plats on Nintendo consoles had better gobble those up at a healthy rate or it could mean trouble. Right now we're dealing with ports, some of which will likely be purchased as Christmas gifts. Forming a conclusion at this point would be a mistake.

The bigger issue, of course, will be next gen multi-plats, though we probably won't have a clue if the Wii U is getting those until E3 at the earliest. I'm going to assume that Nintendo is trying their best to push the Wii U as a viable platform for those projects. If developers are skipping the Wii U from the start with next gen multi-plats, that would be a bad sign. Hopefully they'll at least give it a genuine chance.

I agree, Nintendo is well positioned. Its Sony and Microsoft I don't understand.

Sony especially with its reputation for bankrupting developers. These are companies that are supposed to sink Nintendo's third party support by making consoles with slightly better graphics that bankrupt twice as many companies this time?

Sony and Microsoft both have one foot in the motion control market and the rest of their bodies leaning away from it. They both realize they have the worst stigma a company could ever be labelled with by being called the "HD Twins". A company is defined by its product differentiation.

Furthermore, they don't even have third party exclusives to differentiate them anymore, as all third parties have pretty much said they are going multiplatform for pretty much everything. If both ps4 and xbox 720 keep going with more HD then they will only be adding more multiplatform to the fire.

Are they even both going to release a new console next year. There have been more than a few hints that one of them will be dropping out next generation. Is that Sony with their "10 year plan", in which case, won't it be microsoft being left out of all the ports next gen? or the other way around?

PS3 is only now making a profit, and Sony's stock has been downgraded to "junk". Are they even stable enough to release another console. Or can they not wait to ditch all the negative stigma and bad luck they have had with the PS3 and its many shortcomings.

Sorry im a Nintendo fanboy, I usually type these out then delete them before I post, but this time I actually clicked submit

Really good thread, vinnie.

I have no doubt that the 3DS will continue to be a huge hit. A lot of big games have yet to launch, in Japan and elsewhere.

The Wii U is a little trickier. It really all depends on what the next generation systems look like.

However, I will say this. Nintendo will not slide into irrelevance anytime soon. No matter what happens during the eighth generation, the Wii U will sell well. It's IPs are some of the best and most wanted on the planet, it has a brand new following because of Wii, and it can boast of a stronger than average foothold in Japan.

Like you said, vinnie, many developers are sticking with the proven commodities: Xbox 360 and PS3. But I would warn those who are bullish on Xbox 720 and PS4 that the success and appeal of 360 and PS3 will not only destabilize Wii U; they might also destabilize 720 and PS4.

This doesn't make any sense.  No console has any "position" for the years following 2013.  You know why?  Because we have no games announced to release then, and no concrete evidence of what is to come the years following 2013 for anyone.  Therefore your statement contributes nothing at all to this thread.

Releasing first in a generation is always a good position to be in for the launch of any console, especially coming off a generation where you sold close to 100 million consoles and led in sales.

Differentiating yourself as DarkD said is also good, PS3 and 360 to some people are very very similar consoles, but the Wii and WiiU are different based on motion controls (1st to market and most popular based on sales), exclusive games like Mario - Kart, Super, Galaxy, etc. (the HD twins have exclusives too but Mario still has a bigger following than Halo or anything on the ps3 based on sales), and catching fire with Wii Sports when it first came out, innovating to the point where people who don't play video games were suddenly playing a Wii.

Also, seems that a lot of developers like the architecture, power, and ease of programming on the Wii U, making it an attractive console for game makers.

Nintendo will stay relevant and then some for the reasons I've stated and also because there's too many people who love to play Mario Kart, Super Mario Bros., 3d Mario games, Zelda games, Donkey Kong games, Monster Hunters, and Super Smash Bros. for them not to stay relevant. Mario's been a staple in video games since the 1980's, and the gamers still demand MORE MARIO!

I agree with the OP, 2013 should be a very big year for nintendo even more because they will be not selling anything at a lost, but pure profits.