Let's face it, home console Nintendo is never going to be a third-party power house in the way the Xbox and Playstation are. There are way too many guys in their teens and twenties who associate the Nintendo brand with kiddie no matter what. I have brought up No More Heroes, Madworld and other M-rated Wii games in conversations with PS3/Xbox 360 fanboys in RL and they just brush it off. This crowd for the most part is too ignorant to ever embrace Nintendo no matter how many GTAs, Call of Dutys, etc. they port over. The Call of Duty/GTA gamers that would actually be caught dead owning a Nintendo system are in the minority.
Nintendo would have the best chance trying to win over third-party Japanese development (like the SNES did). But if the PS4 and NextBox are going to be significantly more powerful than Project Cafe (If they are planning for a 2014 release, that will be certain), the Project Cafe is going to be left behind by them again. Their support of the DS is the exception to the rule but the handheld gaming market is a different beast. "Home console-style" games (complete with uber-graphics and all) don't lend themselves well to handheld gaming. The more simplistic, retro design of DS games is suited for handheld gaming.
