I'm not sure if Nintendo will make the right choices in the future but I think some people are underestimating the sales potential of the Switch. At the time of the Switches launch I wrote that Nintendo can't be happy with just equaling sales of 3DS + Wii U combined as this was by far their worst generation. Nintendo's aim with the Switch has to be making it as successful as the DS. And this is possible.
Over the past years Nintendo has gradually shifted the Switch from being a console primarily aimed at male core gamers in their 20s and 30s to a mass market console, just like the DS and Wii were.
This is certainly in part due to Furukawa being the new CEO of the company. Nintendo abandoning the mass market was never caused by smartphones or "the casualz not buying a new console". Nintendo was simply not interested in serving the mass market because they rather wanted to make games for the hardcore gamers. Just look at the Wii U. Do you think the gamepad was implemented because of market research? Hell, no. It was added because some people in the company (Miyamoto being the most prominent of them) wanted the gamepad, consumer feedback be damned. People blamed "the casuals" and said the casual gamers had "moved on" but they had only moved on because Nintendo had abandoned them.
The Wii U gamepad was the opposite of the Wiimote: The Wiimote was simple, easy to understand, fun and focused on motion controls. The Wii U gamepad is the most monstrous and needlessly complicated controller the gaming world has ever seen. But of course, on gaming message boards some people blamed mass market customers for not buying the console.
Same goes for 3D in the 3DS: Nintendo has been trying to push 3D since the Virtual Boy, but the technology was never ready. Luigi's Mansion was originally planned to run in stereoscopic 3D. They abandoned 2D Mario for literal decades so they could make people like the 3D Mario titles; Mario Galaxy 2 even had a tutorial DVD bundled with it. With the 3DS, they tried to push 3D into the mass market, but the market wasn't interested.
During the Wii generation Nintendo tried to get mass market customers interested in its "hardcore" gaming series - and when the mass market sill wanted to play 2D Mario instead of 3D they started pouting, said "screw you!", started remaking N64 games for the 3DS and mainly made games for hardcore Nintendo fans on the Wii U (even Nintendoland was a game for the enthusiasts: It is focused on Nintendo IPs! The mass market is not interested in this)
TLDR: You can't give your 250 million Wii and DS customers the antithesis of a Wiimote and make them pay for a 3D feature they don't want and then expect them to show up to buy your product. I think Furukawa understands this and is making Nintendos developers develop games that are mass market compatible. Ring Fit Adventure, Brain Training, Fitness Boxing, Animal Crossing, Clubhouse games... these are perfect examples of games that appeal to the expanded market.
If Nintendo plays their cards right and gives us games like Switch Sports, 2D Mario, etc. then the Switch has the potential to sell as well as the DS did. But only if they play their cards right.
