Nintendo really probably has their hands full just maintaining their handheld market, it will take a minor miracle for that not to continue to drop. That's where their focus has to be.
Consoles are ... tough. Nintendo could create another really successful home console ... but technically so could Sega.
Realistically ... not without a miracle controller, and even then, in today's market, that likely would be copied very quickly (MS and Sony inexplicably gave Nintendo 4 years all to themselves basically with motion gaming whereas the N64 controller was copied much more quickly).
Sony is too strong in the console market and they appeal to *everyone*, you have to to be able to sell the amount of systems they sell every generation. Even in a "down" generation, the PS3, they'll end up selling 90+ million consoles, which just about equals Nintendo's best generation and in the three other console gens they've demolished Nintendo without even breaking a sweat.
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