The problem is as long as Microsoft is in the market (basically getting nowhere themselves) they hog up too much space for Nintendo to make a traditional style console. There just isn't room for three different consoles doing roughly the same thing.
Nintendo will pivot more towards being a IP brand I think in the next few years, where kids can get introduced to Mario/Zelda/etc. through movies, TV shows, theme park attractions, and smart phone games, and that hopefully broadens the pool for a new wave of kids willing to get into the Nintendo hardware ecosystem (NX).







