I dont know what Nintendo Will do. A lot of people asume that they wont make a powerfull console, but nintendo once had the most powerfull console of its time. The Nintendo 64, It rendered 3D faster than any other and it was technically great.
Also it had Zelda Ocarina of Time and Mario 64, two of the best games of all times.
Hardware wise the N64 was awesome, surpassing the competition. If it had CD ROM support, it would have been one of the best consoles of all time.
But Nintendo can win without great hardware like with the Wii. Thing is, Casuals are going mobile, People dont care as much as before about controls like the wii mote, (how many games did sony or microsoft showed with kinect or move at e3 2015?). And Wii sold at 250 USS, very cheap. So, I dont think it will be easy to repeat that, doesnt mean they cant, but innovation is 4k and VR oriented now, Two things that Nintendo dont care much about.
So, I wish at least they make a console that can run good graphics at full hd (1080p) 60 FPS, that will be enough for the quality needed for the mayority and parents that want to buy kids a console. Also that would allow 3rd party developers to have enough power to run games. If nintendo makes a x86 machine then it wont be that difficult to port some 4k game to run at full hd with great graphics.
I wish they do something great, but if they go for no x86 compatibility and weak hardware, they better have some really amazing innovation under the hat, or they will be SEGAzed.