Right now nintendo reminds me of how they were in 2002/3. The Game Cube was largely failing, but the Game Boy Advance was doing really well. Some People were calling for nintendo to leave the hardware market like Sega had done a few years earlier. the Game Cube was also perceived as kiddy by most of the gamers at the time as well (it had a handle and looked like a lunch box for pete's sake). It struggled to keep up with its competitors, but Nintendo slugged its way through that generation to the real ease of the wii, where it really reversed it fortunes. Nintendo's next step is to ride out the Wii U like it rode out the Game Cube and be ready to compete again in the next gen.
I guess what I'm saying is that nintendo has been the underdog before, and can survive as the underdog again. Nintendo's not going anywhere.
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