It would be pretty easy for Nintendo to release the NX with slightly better specs than the PS4 and make a profit on it. The NX, if released in 2016 will be 3 years newer than the PS4 and the cost to make a console with equal or a little more power than that console in 2013 would not be difficult for Nintendo.
Nintendo has a lot to prove, I think they will come out swinging honestly. This idea that Nintendo is weak or could never be #1 again is pretty funny, they have billions and billions of dollars in the bank (cash on hand) with no debt and two separte stocks, one in Japan and one in the United States with both having a market cap net worth of over 21 billion dollars each.
The fact that Square-Enix is already wanting to port the Unreal Engine 4 based Dragon Quest XI to the NX, not to mention Final Fantasy XIV to the console is pretty telling already that the system is capable of good things graphically. Besides the graphics though, I am even more interested in the forward thinking modern video game gameplay designs Nintendo is going to come up with for the new NX controller with the possible rotating mouse wheels as shoulder buttons.
I would say Nintendo is in a very good posistion to make a come back with this console/handeld combo next year.
