The Wii was a response to the decline in home console sales - which worked out very well for them. "The Wii was a fluke" Narrative is complete bullshit - it was a deliberate, intentional and genius move to capture an untapped market. They were banking on a similar strategy again, but the execution was terribly flawed.
The next console could flop worst then the Wii U - in fact Nintendo could already be irrelevant in the home console market, however, it is impossible to predict the future - as anything can happen. When a company is pushed to the edge they will no doubt fight back - luckily -Nintendo has a few tools at their disposable such as their war chest of cash, popular IPS and more importantly talent.
Nintendo is still one of the, if not - the biggest dedicated gaming company in the world.
I personally wouldn't count them out just yet.
