I am not concerned. A traditional Nintendo console would've failed no matter how strong or weak it is. The competition is just way ahead at this point.
Don't get me wrong, the NS is a traditional console, the neat twists it offers are great, but the main attraction is streamlining Nintendo's first party studios efforts; "Listen up everyone, make the best games possible for this one device period". No more droughts. The need to get third parties on board is diminished to an acceptable degree.
The 2nd unspoken main attraction is how easy it is gonna be for developers to port their iOS/Android games to the NS, from someone who kept an open-mind when it comes to smartphone gaming, I can tell there are a lot of quality titles to be played, and they'll keep on coming. You don't like the lack of buttons? Enters the NS. Maybe this is me wishfully thinking, but I think it would be smart for Nintendo to attract iOS developers as an alternative to AAA third party publishers who will not be interested in spending even more money port/down-scaling their games to ARM-based console. NS supports UE4 & Unity? So do most smartphones.
I think one of NS's concerns is the 3DS. It's pulling solid numbers still and pumping out great games, and it will probably always be cheaper.







