Tough question really. If Sony were just a games company, it'd clearly be Nintendo, however they have a lot of other things bleeding money.

At the same time however, they have the option to spin loss making sectors off, as they are doing, whilst having a highly successful video game division.

In comparison on a gaming front Nintendo has a strong handheld format, and a near dead home console. Sony is pretty much a perfect mirror of that, however software sales on home consoles are generally far better meaning, from a gaming only perspective, Sony currently has the rosier horizon.

Obviously Sony. Is there even a question?

Still, I find the "no one talks about Sony's problems, only Nintendo's problems" thing a bit silly. I mean, people on gaming forums generally know about gaming. That makes Nintendo very simple to discuss. Nintendo's problems are right in our wheel-house. Sony? How many people here are in a position to seriously and knowledgeably discuss the insurance industry, the film industry, and the medical imaging industry? Not I. All I can really do is repeat what I've read elsewhere and I'm willing to bet it's the same for most gamers.

This has been a test. If you said Sony, you are a fanboy. Plain and simple. If you think a company that has been losing money consistently and is in debt is in better shape than a company who has lost money one year out of 30+ or so and has billion dollars in liquid assets most of it in cash... then you're a fanboy. Simple as that.

What I'm saying is that they openly cling to that strategy they've had for decades. It was born in a time where this was the only way. That time is gone, people make billions without having to provide both hardware and software. I'm not saying that it doesn't work anymore but that it is a stretegy that was created in a different time and is not the only option and probably not even one of the best anymore.

 If that strategy one day doesn't work anymore but they still refuse to go 3rd party then I am correct.

I would say both. Nintendo has a ton of money thanks to wii and ds, but 3ds is dying faster than everyone thought, smatphones are growing even more & wii u that looks like a failure commercially speaking. They have to earn a Wii like sucess in their next console.

On the Sony's side, Vita is improving a little, but still is a huge step down from PSP. PS4's success should help them a lot, that's for sure, but if they don't make better decisions with their other divisions... bad days are coming.

Sony, easily.

I'd have to go with Sony on this one. Sony is losing billions and is a shell of it's former self. Lets be honest Sony will never be that great company they once were.

To be honest their both in trouble for the most part. The one who's in the least trouble is microsoft despite the fact that the xbox brand hasn't made them money yet. Nintendo's long term future is bleak because they serverely damaged their handheld brand. Sony's short term future looks bad because they have to restructure the company and add to the fact that they have being hit with massive losses in the past. From this point onwards Sony Electronics is no more and instead will be known as Sony Insurance due to the fact that it's their biggest money maker alongside with the entertainment division. 

Just because Nintendo has alot of money in their reserves doesn't mean that they won't lose it. What you keep in the race matters more and this time Nintendo will be dropping alot of money in due time. 

You do know that Nintendo has been around for over 100 years right? According to Google, Nintendo was founded in 1889 and Sony was founded in 1946 and Microsoft in 1975... That means that Nintendo had to go through over 100 years of being doomed yet they aren't doomed yet... If anything, between the three companies, Nintendo is probably the most resilient company ever... Not to say or undermine that Sony and MS aren't the same, but that experience obviously counts for something... Nintendo went through a shit ton of failures and many CEOs (some good and some bad) and they are still surviving so I just don't see them going anywhere just cause the wiiU is not doing well...

Edit: Fucking keyboard (changed 1986-1946)

Sony

-Financially in a bad spot (huge debt)
-Finally has a clear strategy to turn things around (by cutting off or spinning off their cancerous division)

Thoughts: If all goes according to plan or if Sony gets very lucky. The company should have a better outlook by 2015 or 2016.

Nintendo
-Financially stable (boat loads of cash)
-Doesn't have a very clear strategy for the future yet (still a lot of planning to be done)

Thoughts: Personally, I have learned to never doubt Ninty. Yes, they aren't always on the top of their game but they always know how to make a comeback.