To the question in the title: There's no such thing as too big to fail in consumer electronics. So If Nintendo falls completely life will carry on, including in video gaming.
But it's not going to happen because Wii U will do fine, even if it sells less than PS4 and Nextbox at the end of next gen it will still sell fine and be profitable for Ninty.
So in the end this is an existential non-issue for Ninty in particular and gaming in general.
“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell
"When the power of love overcomes the love of power, the world will know peace."
Jimi Hendrix







