If you mean recapture the market share of the NES/SNES days then the answer is that they will probably never reach that point again.
Not only is there a lot more competition but that competition is no longer being artificially held down and controlled by Nintendo. Publishers like EA, Activision, Square, and Ubisoft have become forces in their own right. With Playstation, Xbox, and PC all being viable sources of software sales, if anyone tries to hold down third party sales in order to push their own first party offering, suddenly they'll be out in the cold in terms of multi-platform hits, which will in turn limit console units sold.
If you think back on console history, there was a time when EA took a massive risk by refusing to give into Nintendo's conditions for making NES games. That's no longer the case today. No one entity has the kind of power over the market that Nintendo once held.
