Nintendo always must have a console available. Many franchises wouldn't translate as fluently to handheld. Their local play is stuff of legend

Well you've been pretty vocal in the past that just recycling motion gaming, which is now a old hat idea (8 years old and available on practically every game machine) is the way to go. 

If you're saying they need to make a dramatically different console every time ... sure, but that's not easy to pull off. VR is one. A sex/porn console is probably another (laugh, but the old adage of sex sells isn't untrue). Outside of those two avenues I'm not realistically sure what Nintendo could've done. 

They're trying to serve an overserved market, the average gamer has way too many options/choices as is. 

I think there can be room for three consoles. Just probably not the Wii U.

Honestly, I think a low cost Nintendo system has a good shot at the "second console" market. Assuming they continue with substantially lower specs than Microsoft or Sony and they only go with cheap to implement hardware gimmicks/innovations, I believe they could see good results as the system's library of games continues to grow. It might be hard at first, with only Nintendo loyalists buying, but such a console would see interest mount as the price went down.

The Wii U, hopefully, is no better a benchmark than the Wii. Both might very well be anomalies: the Wii for going viral with the fickle casual market and the Wii U for being an expensive console with low specs.

The important thing is that no company has to be "number one" in order to be successful. Nintendo could ship a low cost, low spec console that shows a profit day one and then start generating revenue with their software. It won't matter if they are first or if they're third.

The only other option would be to directly compete with Microsoft and Sony, something which they've shown little capacity to pull off. They can't be a generation behind on features and expect to win head-to-head. The safer strategy would be to drop back to the budget market.

Ka-pi96 said: I think there is still room for Nintendo. Although I certainly wouldn't be upset if they did leave

Oh you... Never change Ka pi. Never change! 

Pretty sure Atari was doing gaming stuff before Nintendo..

Even the "budget console" thing is problematic at least this gen because the PS3/360 basically will serve that market for the next 3-4 years with tons of cheap games available and eventual sub $200 price points. 

Well theyre not still in the console buisness though...

Nintendo has butchered many of my favorite series. Unfortunately, I'm still a Nintendo fan at heart, since they did make my first console.

Which ones?

Ka-pi96 said: I think there is still room for Nintendo. Although I certainly wouldn't be upset if they did leave

Damn. Dos be fightin' words you're throwing around there. Nintendo makes some of the best games in the world! Not having them as a gaming company would be a great loss to the gaming world.