I think people should just kinda accept Nintendo is doing their own thing. They're not going to compete with Sony/MS, and unless Sony does something monumentally stupid like making a $700 PS5 and Nintendo simultaneously has a controller miracle, they're not leading in the console market again. And even with everything possible going right for the Wii and everything going wrong for the PS3 early on, the PS3 has almost caught up to the Wii.
Their best bet is they can keep enough kids off tablets/smartphones to hold a decent sway in the portable market and turn a profit there.