Nintendo is simply not in direct competition with Sony and Microsoft, though people will always buy Nintendo consoles for their first-party titles so I can still see them selling a solid 18-20 million units this gen. A far cry from the Wii's numbers, but I think there's a lot of confusion regarding that consumer base, which in turn leads to all the doom and gloom Nintendo articles that pop up all the time these days. Nintendo fans are still very actively buying and supporting Nintendo products, and the company keeps raising the bar for themselves, as evidenced by the recent Super Mario 3D World. The assumption that they've 'lost' a huge audience is only partially true, as it's more likely that most of those casual users who were 'turned on' to gaming by the Wii have moved on to phones and tablets rather than other consoles.
It's all about the game.
