Nintendo isn't ready for next gen.

[PAOerfulone]

But the multiplats/3rd parties AREN'T there, so those people aren't going to be drawn in to buy it. THAT'S the thing. A great 1st party lineup + good 3rd party support leads to more units sold.
It's one reason why Sony was able to get out of the whole it dug itself in when the PS3 was struggling in its first years against the 360, high quality 1st parties (Uncharted 1-3, LittleBigPlanet, God of War III, Gran Turismo 5) with strong support from 3rd parties (Batman: Arkham Asylum and City, Grand Theft Auto IV and V).
You don't think it would do the exact same thing for Nintendo?