Ahh, the infamous Nintendo cycle. The thing is that people is lookin at the wrong direction: It's not the consoles the ones that change, it's the competition: The NES had barely any competition, and it would have sold more in a healthier market (remember, the NES came after the crash). The SNES competed against the Sega Genesis in one of the biggest console wars of the industry, it lost a lot of people to Sega. The same happened with the N64. Both Nintendo and Sega fans switched alliances over to PS, and that trend continued with the GC. The Wii was a monumental success not only because of the casuals buying it in hordes, but because Nintendo's main competitor, up until that point, PS, had a ton of problems that gen, and their fans moved to the Wii and the 360. When the WiiU arrived, not only Nintendo made every mistake posible, but both the PS4 and the XBone offered a much more attractive option than the U.
Sure, Nintendo made a lot of mistakes, but their biggest weakness through the generations has been their inability to keep most of their userbase. But you have to consider that Sony and MS are two of the biggest corporations of the planet, with more resources than Nintendo: they can make their own hardware, have better distribution around the glove, have more money to share with 3rd parties...
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