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Nintendo is synonymous with console gaming. Hell in some parts of the world my friends still call playing video games "playing Nintendo" even if it's PS or XB and they don't own a Nintendo console. Nintendo not being a part of the hardware market would be a sign of the imminent collapse of the console market in its entirety, Sony is currently dominating the market, and despite flagging sales MS has the deepest pockets of all and likely won't back out. None of them will likely drop out of the console wars outright.

We're fast approaching the point where "advanced" consoles like the PS4 and Xbone are heavily dated by the time they release. That's why we see games constantly letting gamers down in the graphics department, like watch dogs and anything on Xbone. I wouldn't be surprised if in the next generation or two Sony and MS take a custom PC approach to gaming. Either becoming extensions to PC, or just making their console into subscription based PCs where they upgrade hardware over time. It's the only way I can see them keeping up with the ever faster improvements of technology. If there will be any "true" consoles on into the future, I think they will be by Nintendo because of their focus on different hardware instead of powerful hardware. A focus on powerful hardware leads you to PC instead of consoles. Yes the Wii U looks like a miss currently, but we're only one generation removed from their biggest success story in company history. The Wii U doesn't even have it's biggest innovation out yet, the amiibo.

http://venturebeat.com/2014/07/05/how-nintendo-is-different/

http://venturebeat.com/2014/07/09/the-wii-u-is-set-to-impress/