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Nintendo knows how to make money, they have several times been awarded the best company in Japan, because of their ability to profit in virtually all conditions. They have as far as i am aware, never had an unprofitable year. If Nintendo can survive the 'flop' that was the gamecube i really can't see anything else taking them down.

If you want to argue that Nintendo might have or may end up as a bit player at some time, then i could agree with that, but if they really had another travesty, they would simply minimise the damage, profit as much as they could and live to fight another day. Their very nature as an innovator means they will always have the chance to fight back. Anyone who thinks Nintendo was or is going to at any point, just going to fade away, has paid no attention to how theyhave run their business. So if having a different business model from Sony and Microsoft means they aren't in direct competition, then i agree.