Its 10 million units sold while the user base keeps growing. And if its strong enough to compete with NX why bringing out a new device? Sony should just drop the price, bring out a new wave of exclusive for a period of time to show the horse power of the vita again. 

The vita could easily sell 40 million units until 2021if sony does it right

And Xbox One will outsell the PS4 worldwide by the end of the generation if Microsoft does things right. Seems just as likely as the vita selling 40 million units... Actually the Xbox One scenario seems more likely...

Um, Nintendo consoles have sold worse and worse each generation as they gradually lost third party support (excluding the Wii for obvious reasons). Where your proof to support your claims?

If nintendos handheld is not more powerfull than the vita then the vita can compete with it another generation and since graphics improve the vita gets utilized more graphicly. It should increase in sales espacially if sony drops the price. And i am talking about 2 generations here, 40 million should be archieveble in 2020

Iwata, Reggie, Miyamoto, they all have to go. A clean sweep. Management needs new blood.

What does power have to do with anything? Let's be honest here, everytime any time someone has challenged Nintendo in the handheld market, the competing handheld's hardware was superior to Nintendo's... How did those handhelds do against the Nintendo handhelds they competed against?

Even if Nintendo's next gen handheld is still weaker than the Vita, it's sales will still probably run laps around the Vita.  Sony isn't commited enough to make their handheld a competitive platform to Nintendo, nor do they have the games portfolio to compete with Nintendo in the handheld realm.

40 million isn't achievable.

It's hard to imagine at first, but they have to make a cut. Square Enix made this cut, and they have done it right. They are making profit again because of a few smart moves the past years (including a cut in the Management). Regie never was a good Businessman, I think he know that, but it's his presence what makes Nintendo of America a pleasant Company. But I think Nintendo of America needs a man who makes better decisions. Miyamoto is, without a doubt, one of Japans greatest Videogame Masterminds, and most people think, his Job is nothing more than to supervise a few projects and smile into the Cameras. The truth is, Miyamoto isn't the nice guy you see at E3 oder Nintendo Directs. He's, compared to Regie, a Businessman with a clear perspective. But his perspective is, in the year 2015, old fashioned. His "Gameplay comes before everything else" Philosophy is not an Option anymore. Yes, Gameplay should be fun and smooth, but you also have to tell a good Story and sometime you have to go beyond borders to present unique Features. I mean, it's still great what Miyamoto is doing, but I think it's not good enugh anymore for Nintendos future. The guys working under Miyamoto don't have the freedom they want, in many "Iwata Asks" you will read this concern of his employees. During development, Miyamoto is dismissing many great ideas.

And last but not least, Iwata. Iwata is an charismatic Leader. He was great as a programmer, and he knows to handle a business. The success of the DS and the Wii is also the achievement of a lot of his decisions. But like many men in this business, he made a pretty bad decisions the past few years. Putting less Power in new Nintendos Systems for the sake of design and less noise, the Regional Lockout and he even dismissed many ideas when it comes to Games. Spirit Camera was his idea. You know, green lighting a crap like Spirit Camera instead of a Fatal Frame Remake on the 3DS is a pretty bold move, or a pretty dumb decision.

So yeah, with Nintendos current management, it may not get better. Nintendo needs a new Philosophy, they need a Management with smarter ideas. It could be so easy. You even make progress when you simply remove the Regional Lockout on a Handheld. Heck, remove the whole Lockout on every System instead of decide which Games fits better to a specific Country.

Or other simple features like a propper Online-System. Get rid of Console based Account-System, add Trophies to your Games. An Nintendo employee stated a few years, he never heard of a feature like Trophies or Achievements until the Wii U was launched. Please let DeNA handle handle the Nintendo Network the upcoming years, these guys know what they are doing.

The family audience still exists. Families didn't all randomly break up in the last 3 years. They just need to know how to capture it if that's what they're trying to do.

I agree with OP almost completely, it is the same thing I've been saying all along.