I've got to try floating down the denial river, seems fun!

Anyone thinking Nintendo's outlook is bleaker than Sony's is simply living in another reality, whichever way you cherrypick or spin it (not that Nintendo's looks fantastic).

1: The PS3 losses were down to a crazed engineer (Kuturagi) who was given free reign for far too long and his managers being too incompetent to see what was going on. If they'd realised just what the unit price was for the spec, Kuturagi would have been told to ease off, however by the time they realised just how ludicrous the PS3 spec was, they were too close to launch to do anything about it. The PS4 is far more cost effective in design and I understand break's even with 1 piece of software. Aren't Nintendo also losing money on each Wii U sold despite having previous gen technology due to the cost of the pad?

2: Sony currently have a much more promising looking outlook for this generation. I don't really see what Nintendo can do to salvage anything from this gen now other than to aim to break even and rectify it for next generation. However, Wii U has hurt their reputation. Add in the damage done by the panic 3DS price slash etc in 2011 and Nintendo's likely scaring off a lot of early adopters on their future systems. They now have the advantage of being able to regroup knowing what their competition is for the best part of the next decade, but whether they will be able to convince people it's worth buying into their next product remains to be seen. No point having billions in the bank, if they have no significant foothold in their only market. It would just dwindle away.

3: To say Wii U is on anything other than life support is optimistic at best. Don't get me wrong, I do have a Wii U with 8 games. But I don't see anything this year that is going to significantly reverse it's fortunes and if XB1 and PS4 continue to sell as well as they have done out of the starting block, I don't see a route back into significance for it. I honestly thought 3D World would have more impact than it did. Hopefully Mario Kart 8 will help it shift units, but it currently looks like the audience that carried them so well with the Wii may have now had their fun and moved onto other things.

4: 3DS has sold great to date, but the declines YoY will certainly be worrying for Nintendo. They blew their load in 2013 with big name releases. What is left to help the system continue it's hardware momentum at the moment? Making another console looks like their only route out at the moment, however if they've shot their brand loyalty as a result of Wii U, and the main gaming population are happy with XBONE and PS4, it's going to be a difficult sale. They won't have the price advantage because any hardware they make will need to at least be on parity with PS4/XBONE. Those epic financial reserves could well end up being depleted far faster than you would expect.

To say Nintendo's outlook is rosier than Sony's or Microsoft's right now purely from a gaming perspective is very optimistic. Sega went from a very successful console to bankrupt in 2 generations. I don't think Nintendo will do the same as I'd hope they won't make quite as stupid business decisions, but when gaming is your only revenue stream, if your gaming sector mis-steps, they need to get back on track ASAP otherwise it's game over. Nintendo have had 2 blunders in a row now. Will people be as keen to jump head first into their next system?

That said, I know they have a sale from me, had a Wii U at launch and perfectly happy with it. I'll buy any console with a Nintendo logo on it just for Nintendo games and I hope they do manage to find a way out of their current rut. But I still think Sony's gaming division is currently looking rosier. Call be blind, living in an alternate reality or whatever, it's just my irrelivant opinion.

Seems like you're the one in denial in the face of facts.

Sony still has a lot of profitable divisions including their gaming one. Nintendo on the other hand...

http://www.siliconera.com/2014/02/10/nintendo-3ds-sales-outpacing-game-boy-advance-japan/

Are you living in fantasy land?

Sony has WAY TO MANY DEBTS.

Nintendo has none.

SONY HAS NET LOSSES

Nintendo has net profits (operation losses tho)

SONY FIRES PEOPLE SELLS BUILDINGS

Nintendo builds statuses, goes on hiring sprees

SONY BREAKS EVEN ON GAMING DUE TO EXORBITANT SPENDING

Nintendo profits off gaming. (MS loses money like a bitch)

VITA SELLS LESS THAN THE SEGA SATURN

WiiU sells more than dreamcast

SONY IS DOOMED

NINTENDO IS DOOMED

WE"RE ALL DOOMED

http://si.wsj.net/public/resources/images/MK-CJ910_SONY_G_20140206183904.jpg

From a purely gaming perspective Nintendo has a lot more genres they need to cover if they want to sell more hardware

In the west for instance, they should put out a Metroid PRime on the 3DS. A super metroid on WiiU for the japanese

Ps4 cant even save sony man why do i even waste time with these sony droids

Neither both companies future's will be bright.

For Sony they are going through a new transition, since Kaz Hirai stepped up as CEO in 2012 they have made some drastic much needed changes. Obviously Sony is restructuring it's business model acknowledging that their expensive high-quality products aren't in demand. People want the BEST PRODUCTS for the CHEAPEST PRICE.
For now Sony will stick to what it's good at; Entertainment(Music/Movies), and Hardware(Playstation) etc...
Restructuring takes more than a few years, it will take Sony another 2 perhaps 3 years to get back on track.

Nintendo is in decent shape, they were really relying on the Wii U to be Wii popular. Unfortunately that wasn't the case.
3DS profit will offset the Wii U losses, and vice versa. They know their target demographic better than anyone else (ages 5+), but gimmicky controls will have to stop or they will have to come up with something very bold(aka a new way to play) to get a leg up on Microsoft and Sony as far as consoles go.

Overall both futures are bright look for Nintendo to get back on track in about 6 months to 18 months.

Sony's gaming division is profitable. Nintendo is forecasting losses for the whole year. With the 3DS slowing down and the WiiU not going anywhere, expect the situation to get worse. Well, I suppose their future unwearable items can be a massive success.