I think they probably will suffer some continued hardware erosion next generation. The 3DS launched at a point where budget tablets/kids have phones was not such a big thing, but the NX will have to face that from day 1, that is a steeper hill to climb even if it's a better product.

That said I think they will make much more money next gen largely because of smartphone games. If done reasonably well, Fire Emblem and Animal Crossing alone should clean up on the app store.

Square-Enix makes a lot of money from smartphone games, I don't see why Nintendo couldn't double or triple+ what S-E makes. I think NX itself will have custom version of Android too so you'll be able to consume smartphone apps on the NX itself (Nikkei has proven itself to be correct multiple times). 

Movies are a wild card, they would need to hire a funny/clever writing staff like what the LEGO Movie had. Angry Birds has done pretty well but again it has a decent writing team.

I think Nintendo's focus there should be to start with a Super Mario CG movie that leads into a Smash Brothers series of films that can highlight other Nintendo characters. But it needs to be funny and clever, it can't be written by/for game nerds (sorry guys, but go look at Warcraft's box office).

If the console NX bombs quickly and is more Wii U than Wii, then I think they will shift over to making console games for the PS4/XB1/PC or having a joint partnership with one of Sony/MS, but continue to make the NX portable. 

So they are getting the same profits as they were getting through the 90's and 00's until the Wii came?

For a company that suffers one of its worst moment ever that is a surprising stability.

Not true, look at the annual shipments, net sales & operating income charts in the OP, from FY1990-FY2005 all 3 of those were pretty stable with just a few low years, thats nearly 15 years of stable shipments, sales & income.

After that they had an era of huge growth (DS/Wii era) followed by a huge decline to lower than their stable period.

So you are completely wrong when you say that Nintendo has been in constant decline since the NES.

3DS is at record low handheld numbers, Wii U is record low console numbers, and they have burned bridges with nearly every third party out there. Honestly if Wii never took off, Nintendo would probably already be third party. A publicly traded company can not just keep pushing out failures gen after gen with rapidly decreasing numbers each gen as their core fanbase shrinks.

So they are getting the same profits as they were getting through the 90's and 00's until the Wii came?

For a company that suffers one of its worst moment ever that is a surprising stability.

Absolutely none of that is relevant to what you or I previously said.

You: Nintendo has been in constant decline since the NES.

Me: From FY1990-2005, Nintendo had relatively stable hardware shipments, net sales & operating income.

Do you understand my last post now? I was correcting a false statement that you made.

Step 1.  Clearly reveal NX as  what it is avoiding Wii U-like confusion

Step 2.  Correctly advertized NX

Step 3.  Release NX with Zelda, Pikmin 4(most surely), and FFXV(rumored, possible seeing how SE is eating up NX with DQ), and other games.

Step 4.  Maintain a good stream of 1st party games, no more than a month between games, to attract 3rd parties that will help fill the schedule

Step 5.  Profit