If or when that happens it would be, because of two things. The first would be that the core audience for their own games would have significantly dwindled, and the second would be that they had suffered a financial cataclysm that would prevent them from launching new hardware. Whether people like to admit it or not these things are possible in any industry for any company. If you had told anyone ten years ago that Sony's stock would be reduced to junk status in a decades time. They might well laugh at you, and say that is totally impossible.
That said I think Nintendo wouldn't last in that market for very long. It just wouldn't have a market for its software, and if its online network is any indication. Nintendo has a hard time adapting to changes. Even when they are just plain obvious. Sometimes I feel like Nintendo is a fossil factory. If you threw them outside of their little box they would die of exposure in no time.
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