I love that the OP is just coming to this conclusion now. As if 10yrs ago people didn't realize this to be the case...
Nintendo was never that great of a competitor in the face of ACTUAL competition lol. They failed as a company to stay competitive or relevant. No one to blame but themselves.
The smartphone revolution pretty much crippled nintendo's "we're the unique guys," "we do our own thing" strategy. It was fun while motion controls lasted, but now people want touchscreen tablets and smartphones. Nobody is willing to purchase dedicated nintendo hardware for a duel screen controller...
I don't see any realistic way for nintendo to make any progress this gen. Eventually a small profit after a few years? Once PS4/720 hit --it's all over but the wiimusic. (I still don't even know what wiimusic was)
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