Nintendo's made themselves into a niche player in the console business. Nintendo is still dominant in the traditional handheld space, unfortunately for them though that market segment is shrinking because the number of people willing to carry around a separate game-only portable in the age of the smartphone is dramatically shrinking.
Sony is honestly the "real" mainstream console maker. Sony has had success with every one of their consoles and in the 20 years in the business have dominated Nintendo for 16/20 years (and counting). Their worst selling console (PS3) is going to end up finishing very close to Nintendo's best selling console.
Nintendo is just not very good at competing with Sony consoles. MS is a little better but only marginally so.
The worldwide audience is voting, and they are voting with their wallets overwhelmingly in favor of Sony. Even in Japan it looks like the PS4 will overtake the Wii U without much fuss. Nintendo isn't competetive with Sony consoles anywhere.
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