And by well, we mean extremely well most of the time. And we don't even count handled console.
Two reason more to stop, lets stop !

The OP isn't saying that Nintendo's handhelds should stop, just their consoles.

Yeah the way i see it both markets (consoleand HH) are being cannibalised.HH is being killed by tablets and phones, consoles are losing huge swathes of their audience because the casual who came for the Wii moved on to phone games and tablet games.Plus PC gaming is kicking ass nowdays.

Fusion is the future, a handheld like the WiiU controller that can be hooked up to a big tv and play hi-res, wireless controllers for your friends etc.Could be big! It's better than splitting your already declining userbase by releasing two hardware options.

What?

The Wii U was sold at a loss until a month before MK8 released. By the end of the next fiscal year the console will be profitable for them and if not the fiscal year then by the end of its lifetime.

Good question. But let me rephrase it.

Why is Nintendo after so many years in this business chosing a risky strategy again? In fact they don't have a coherent strategy at all. They allegedly have sooo much money - but they ain't doing much with all that money. Hardware is outdated again (since N64) - regarding not only the perfomance. Therefore software division is not to be enhanced either. Not investing, not growing, not competing, just rolling over with the hope of not to get eaten up by the big dogs.

We are looking at it from an econimal view point?

Then N64 and Gamecube are indeed failed prducts. Losing huge market shares is not in the interest of any company.

And this doesn't look like "make money".

http://finance.yahoo.com/news/nintendo-first-quarter-operating-loss-worse-expected-outlook-074425518--finance.html

Eh maybe they make a profit on the hardware but do they make a profit on game development costs? What about the non existent 3rd party royalties? What about development costs for their next gen hardware?

Only two Nintendo consoles(WiiU and GCN) can be considered "failures". Even with Gamecube flopping the handheld line was enough to keep them profitable. They still have plenty of cash to invest in new products.

I can definitely see a "Fusion" becoming a big deal as long as it's pitched at a reasonable price point. I'd love it if Nintendo did something like that next, maybe at long last that would provide the portable/home console connectivity they've been promising since the Gameboy days and never really delivering!

To answer you OP no they shouldn't. If they want people to experience games they can release them on people's HD console of choice. And the future of gaming isn't this Kinect shit or some tablet. It's the Occulus Rift VR technology.