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spurgeonryan said:

Now what happens to nintendo if it fails?

Iwata gets fired. This will happen with the next quarter of disappointing results, since he already screwed up 3DS and caused the first losses in company history.

Business side of Nintendo takes over (Iwata is a former developer). They make more of what sells and on a yearly treadmill. More NSMB, more Wii Sports/Fit, more Pokemon, more casual type games. All of the games the devs currently don't 'want' to be made get made. e.g. main console Pokemon.

Future hardware doesn't contain expensive new tech like 3D or Tablet or even like Motion Control used to be, until those things become commodity.

We see DLC, online subscriptions, resale restriction, and the other things that third parties do to increase margin without regard for customer reaction.