biggest issue with nintendo is...........................................................................................................................they dont like to spend money.

They really do need to make some fundamental changes in their attitiude towards their consumers and fellow developers. The "always right" mentality has burnt them time and time again. I love what they do, but they could be much more creative if they opened up to new ideas and adopted some humilty. 

Truth be told, the last Nintendo game that sparked my interest was Viewtiful Joe.

Nothing that has come out of the Nintendo consoles in the past few years has excited me to the point of even considering purchasing their console.

Nintendo needs to take a page from Sony. INVEST IN NEW AND EXCITING IP's.

I'd say that's what their mobile games, and partnership with DeNA is for.
Like you and Rol are saying, Nintendo's biggest success has been their handheld division, they've been keeping them afloat even when their consoles were bleeding money, or profiting minimally for years (Game Boy Color- Nintendo 64) (Game Boy Advance - GameCube) (Nintendo 3DS - Wii U). But now with the rise of mobile gaming, that has exploded especially in Japan where handhelds reign supreme, mobile gaming is a bigger competitor and represents a bigger threat to Nintendo than either Sony OR Microsoft at the moment. So with the handheld market shrinking thanks to mobile, that's why Nintendo needed to make that investment with DeNA, so that even if they lose money on whatever NX may be, they'll still have their mobile division to keep them afloat, much like their handheld division has done for their consoles for all these years. (Not to mention, Amiibos, which has also been a huge success for them, and the biggest reason why they're back to annual profits.)

^Best Post I've seen all day! XD

You don't think Nintendo has been prepping for a new console? They may not be outright throwing details in your face but if you actually cared to pay attention they are clearly onto something new that they seem to believe in. It's naïve to think that Nintendo wouldn't have a plan in action before they release the NX. Hell, just the fact that they released the codename for their next console should prove to you that they are indeed doing something.

You raise some very good points, and if Nintendo doesn't change and continues to be stubborn, then they will eventually go out of business.

Directly competing would be pretty much impossible. Sony and Microsoft are mega multi-billion dollar companies that are used to financial losses and can recover from them. Nintendo on the other hand, mostly profits from video game hardware and software, and have only posted a yearly loss once. Trying to use bleeding edge hardware will make them go under at some point in the near future like SEGA did before.

Yeah but in the end of the day they are the same games, nintendo doesnt get more games out of thiws. Its the same situation like with the vita, ps3 and ps4 ports from japan. And we all know that handhelds are slowsly dying. Not to mention they would have to use flash cards as a medium which would scare away many other third parties.