I think the whole family/"more kid friendly" console idea is simply kinda destined for third place in the modern market.
Consumers kinda had their "vote" on that during the Playstation 2 vs. GameCube and showed that they overwhelmingly chose Sony's vision of game console's being more like "serious" electronics with media capabilities over Nintendo's approach of a more "toy like" console focused on gaming with a heavy dose of Disney-esque franchise properties.
Nintendo's just never going to win with this formula in the console business, because even kids don't support it, they want what the Sony model, not the console their mom would buy for them (by the time kids get to age 10/11, they desperately want to play what older kids are playing).
Ultimately Sony's vision for what a home console simply won over Nintendo's vision and it did so a while ago. People just moved on to that. Nintendo is kinda just running into the same brick wall ever since.
Nintendo just can't "win" with this formula. If it was 1994 maybe but it's 2014.







