There is a window of oppurtunity I think because the XBox One is relatively weak in the market that if Nintendo moved quickly with a much more powerful system and gave themselves a fairly large windowed headstart that they probably could take over the no.2 spot in the console business.
But I think it's just too much effort and too far out of Nintendo's comfort zone that they will just wash their hands of the traditional home console entirely.
Instead the Fusion platform will be built on the basis of taking what the 3DS/DS has done well ... which is dominate Japan and try to build from that. But this time they should be able to sell a console variant of the Fusion for very, very cheap ... under $200 even.
If they focus the full weight on their franchise catalog onto just one platform (instead of it being divided into 2) it will probably be a game changer for them. They'll also have more freedom to take risks on original IP if they don't have to make 2 Mario Karts, 2 3D Marios, 2 NSMBs, 2 Smash Bros, 2 Animal Crossings, etc. every gen.
