In the future. And by selling well I mean atleast 50 million consoles.
This would most certainly require as good 3rd party support as Playstation/XBOX gets = the hardware should be as powerfull. I think that the majority of Playstation/XBOX audience prefers PlayStation/XBOX exclusives over NINTENDO's, so it would be hard to "cannibalize" their console sales. But powerfull hardware would allow NINTENDO to make games with "better" graphics, and if they focused more on story and characters than before, atleast part of the PlayStation/XBOX audience could move to NINTENDO.
This would obviously require investments to graphics and story (= new studios) and hardware. But I think that NINTENDO has to make these changes in the future, because their exclusives cant compete with the combined effect of 3rd party games and PlayStation(/XBOX) exlusives.
All consoles could be hybrid consoles in the future, but the other points that I made also stand true in that situation.
"The rumours of my death have been greatly exaggerated."
- Single-player Game