Nintendo's best bet in competing against the PS5/XB2 even if they wanted to go that route (which I doubt) would be having a 1-2 year headstart honestly.
No one is going to choose Nintendo just because they launch at the same time as PS5/XB2, people trust the Sony/MS brands for a certain type of gaming, Nintendo saying "me too" would ellicit a lot "yeah I dunno about that haven't owned a Nintendo console since forever" type thing.
Nintendo's repeatedly said they see their role in the console business now as offering something different. Iwata has also said that Yamauchi would always tell him that Nintendo can't be doing the same thing as others, in fact I think that may as well been his real final directive with regards to the company before passing away -- don't follow others, don't just do the same thing as other companies.
The next Nintendo console I think will be more like the Wii ... wacky, without maybe the overemphasis on casuals (since iOS covers that) but more of a focus on completely new ways of playing. Like I suspect the controller will make people say "what the hell is that" when they first see it.
