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I do think the threat of APP games, social games and Cloud based games are real. The first two absolutely cuts into the very market Nintendo carved out with DS/Wii and Cloud will affect all console makers when it really starts to take off.

3DS and WiiU seem to be a retreat to core from the blue ocean strategy. It's like Apple(Android) stole their blue ocean and not knowing how to compete Nintendo is backpedaling hard.

On the flip side, all the 'experts' and for that matter 'gamers' considered Nintendo doomed to Sega status at this point in GC life before Wii's immense success. So let's wait and see before we jump to conclusions.