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Folk just keep looking at the local home console market to determine if Nintendo is doing well, when Nintendo despite not making as much as the DS and Wii years, is still doing very well compared to everything besides iOS and Andriod devices, they are still making money off Pokemon merchandise/media and they have started to expand into other revenue generating avenues like theme parks, movies and other things.

Short of epic collapse or Nintendo merging with another major company, they will NEVER be able to compete on even terms with Sony or Microsoft. But they are far from in the same boat as previous rivals like Atari or Sega.