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@ padib.Quotes were getting too long As we all kinda agree on that aspect of the OP it's fair to take the thread as we please. We're the only ones adding.  

The reason I think failure(decline might be a better word) is the assured outcome is because Nintendo will not beat Sony and M$ at their game.  They will never even try to make the next GTA, CoD, Halo, GT etc.  They will get multiplats and that's about it.  Without their own games of that type they CANNOT compete for that auidence. Especially not when their system launches.  

Even with a $299(modest assumption considering Nintendo likes to make a profit on hardware) pricetag it will be the most expensive console on the market without anything to justify that price considering they can get a PS360 for cheaper in addition to big multiplat games like GTA and CoD plus M$ has Halo and Gears and Forza on the 360 and Sony has Uncharted, KZ, GoW and GT on the PS3. Nintendo loses the core library battle.  Since those are the types of games coming out for the system and it's more expensive it will appear toxic to the expanded audience who doesn't game already.  They are either indifferent or see it as a huge honking negative.  The Wii and DS sold because Nicole Kidman and Beyonce were advertising them and it seemed like something women could get into.  It wasnt violent but downright helpful (train my brain, or get in shape with Wii Fit get my child a pet I don't have to clean up after etc.) and quite contrary to what most non gamers think gaming is about(uberviolence and immaturity).  This will seem as grotesque as the PS360 seems to that segment of the Wii audience. 

Really the only way for Nintendo to win is to expand.  They aren't going to beat companies that can go billions in the red and have tons of studios getting better and better at creating those types of games.  Having those types of games only increases costs of production on the hardware and software side for Nintendo.  Nintendo needs it's margins if it's not going to sell like hotcakes.  The core gamer is difficult to please one.  They will only flounder trying.