I don't think Nintendo will ever be a major force in the home console business again. They still make great games and they are an industry treasure, but the times have passed them by as a hardware maker, and they're too slow moving and old fashioned of a company to ever really lead in the console side again. I don't think their "us against the entire development community" way of doing things works.
Maybe if they can find another craze, but I doubt it. They have nothing to hang their head in shame about though, they've had a great run and great longevity. Most companies can't hack it in this business for more than 10-15 years, Nintendo is past 30 years as a hardware maker.
They should be able to survive at a more modest level of success based on handhelds, even though that market shrinks every year, they have enough money in the bank to put things on cruise control for a while.
But I don't think they will ever again "lead" this industry, they're just too idiosyncratic in a lot of ways for that to ever happen, and the industry has broadened too much with college aged and adult gamers that Nintendo's "one size fits all" concept of gaming just doesn't work for a lot of people anymore.
You can see the disconnect with a 60+ year old Miyamoto demoing Project Guard and that robot sumo game at E3 last year and what the modern console audience largely is, which is Western males who are into big blockbuster style Western games ... I mean, Nintendo just isn't even in the same horse race.
