I have always considered Nintendo not to be a competition to PS/XBox...starting from my beginning of seeking a games console back in 2008, when it was already then visible that it is missing a lot of interesting and exciting titles that the other two are bringing (GTA, RE, Tomb Raider, Borderlands, Battlefield etc.)
That immediately deleted Wii from the list of consoles I'm considering, because I don't like Nintendo games.
And that's basically where Nintendo is, as they are still behaving like it's 1989, aiming their product mainly at children, with their secondary target being Nintendo enthusiasts (former children of the 90s). And that is why its home console is in a steady decline from the onset, dropping in popularity every single generation, with a Wii abberation, when they struck gold with selling a gimmick to non-gamers.
Unless they seriously change their strategy and start targeting regular adults, they will continue to decline, as very few people remain interested in their antiquated offerings.
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