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Oh, i'm totally convinced they have no chance of ever getting back the segment that is now in the hands of the Xbox and PS... unless they play it very smart and launch their system at the same time as their rivals, with about the same architecture and specs without beeing more expensive.
At that point, they may have a chance on that market.

Otherwise, they got the portables and mobile if they want (though i think thats a bad idea for them to seriously work for) or the casual market by simply making some sucker system like the Wii for the mothers and grammas and all that.
Actually they could probably find sucess with a Wii 2 with motion controls again if they wanted.