Wii U is done. Mario Kart can't save this trainwreck and its too far off even if it could. 3DS is in trouble. Rough times for Nintendo.
The only possibly good thing about this gen for Nintendo is maybe MS will flee after getting their rear ends handed to them by Sony and Nintendo can slide into a more comfy no.2 spot next-gen.
Demand for Nintendo consoles basically functions in a vacuum, though. Wii proved that presence or absence of competition from Sony or Microsoft really had no bearing on how Nintendo really performed. The rot is coming, as you yourself have often said, from down below, and even if Sony goes belly-up and the activist investors convince Nadella to bail out of gaming, it really wouldn't help Nintendo, except in Japan. Western devs would leave for PC and mobile permanently if the "high-end" gaming market suddenly evaporated due to Sony and/or Microsoft's departure.