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Yes...in the way that it will offer great first party and some 3rd party software to those who own the system, a misconception that the system is SEVERELY UNDERPOWERED, and unreasonable bias to it by publishers(ahem EA) and gamers who want the company to fail or go 3rd party.

NO...it will compete well if not decent with the PS4/X1 and will prove that the capabilities of the system isn't that drastic, Nintendo is in a much better financial situation than Sega was, IP's and brand name is much stronger than Sega ever was, Sega, Capcom, UbiSoft, WarnerBros, and Activision still supports the system despite it's slow start, Madden and EA isn't as significant in the market as it was during the DreamCast days, and missing big 3rd party games will be supplemented by innovative and charming indie development that is embracing the console.