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Im not sure how Nintendo is targeting a different market, as the OP says. They added them to it, but there are still a lot of us old school gamers that have been playing probably longer than he has been alive. There will always be the core market who lives for Zelda, Metroid, Starfox games. Its still a very big market.

As a one console market, I say no. I say more options need to be made. Most people are sick with one of the big 3, and a 4th party would be viable. What needs to happen is an end to non-1st party exclusives. A fair trade agreement of sorts needs to intervene and require 3rd party games to be made for all consoles. No more Final Fantasy, Resident Evil, etc only on one 2 of the consoles - it should be made available to all markets, even if the developer has their hand forced into it via trade laws. 3rd party exclusives are unfair to consumers.