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Nintendo isn't doomed because they own their respective software niches. Platformers, social games, properties aimed at children, these are all areas where Nintendo dominates the competition. Even if they had to give up on home consoles, which I can't see happening, they'd still own these genres with their software.

Nintendo is doomed because of their philosophy of surprising the customer over giving the customer what they want, their out of touch with most of the world business structure, and their desire to gamble on hardware home-runs above delivering a solid product. It's kind of a shame their game developers have to bail the rest of the company out on a continuous basis.