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ps4tw said:
Barkley said:

I agree, people seem to just say "But if they still make a profit they'll keep making hardware!". But in reality it doesn't work like that. If there is a MORE profitable avenue for them to go down, they may take it. It's about achieving the most success, not enough success to keep doing what you're doing.

While this is sensible and would hold true in most companies, the issue is that Nintendo is still very "Japanese" in its business strategy i.e. scared of change. Even though for a long time it's been apparent that Western-style gaming is popular, Nintendo has refused to make any Western-orientated IP, and out of reluctance to change, they may not choose the most profitable avenue. 

This is totally valid, but the reality is that they are changing. They have been diverifying their investments a lot in the past few years. I think the writing has been on the wall for a long time, and the success of the Wii and DS might have stayed a change that has been brewing for quite some time now.