Nintendo may well bounce back but that is dependent on them coming up with something that captures the public's imagination. I'm assuming Nintendo will want to make something based on low cost mature technology but that still offers a unique gaming experience. I don't think Nintendo is interested in playing the power game with Sony and Microsoft.
For me personally I think its important all three remain in the marketplace to keep prices competitive and I've often found less successful consoles provide better gaming experiences. I prefered the original xbox and gamecube to ps2. I prefered the N64 to ps1. The dreamcast was great too. Commercial success doesn't always mean its good for gamers. The wii and ps2 for me were very disappointing consoles.
