Pretty sure MS is already hiring hardware engineers for the next XBox. So that "no XBox" fantasy can probably die right now. Would've been nice for Nintendo since they haven't done well with the core audience since MS arrived and basically just assumed the no.2 role right from Halo launch.
Before that Nintendo wasn't doing great with that crowd but at least with things like GoldenEye, Perfect Dark, NBA Courtside, 1080, Star Wars games, etc. they were some what relevant. After Nintendo allowed themselves to get beat by even the original XBox, it went all downhill, Nintendo basically got locked out of that audience entirely and so today when the casuals bailed out on Nintendo, you have a pretty predictable situation of no one but Nintendo fans being interested in a Nintendo home console.
You've simply handed over too much of your audience to the likes of Sony/MS on one end, and then Apple/Google (casuals) on the other end without putting up a fight for either one.
