I agree, I am confident in nintendo that they wont fail again. If they do, atleast i will have the best memories and childhood i ever had.

Because streaming will kill off traditional console hardware.

GTA 5 never outsold the Wii U library

I heavily doubt it

As much as the Wii was an anomaly, the Wii U, hopefully, will be an anomaly as well.

First, Nintendo needs to look closely at the Wii U and understand why it failed. Simply put, it was a catastrophe of design principles. Weak AND expensive? Centered around the idea that the gamepad is revolutionary but without the means to prove it? Sacrificing the base performance of the console itself in order to include an expensive gimmick?

The Wii U was a commercial failure waiting to happen.

Nintendo, working with a year's head-start and time gained from the abandonment of the Wii, should have, at the least, achieved moderate success. Instead, they committed blunder after blunder and proved that they did not understand their audience. For a business, that last part is anathema. You cannot survive as a business without understanding your audience.

Perceived value is everything to consumers. It varies from person to person, obviously, but you're still going to have a bell curve with most people falling in the middle. I think many of the millionaires running large corporations lose sight of what value represents to most of their potential customers-- the PS3 and Wii U are perfect examples. Actually, the original price of the 3DS is probably a good example, too.

If the next Nintendo console has an expensive gimmick that they are unable to justify to the average person then it will likely be failure.

Ramping up to compete with Sony and Microsoft is possible--they have the money to make it possible--but it would be very expensive to play catch-up after turning their heads and ignoring the rest of the industry for so long. On the other paw, I think a low-end machine from Nintendo could do quite well; if it's cheap, then expectations are lowered, it becomes much more viable as a "second console", and it becomes a great option for parents buying for younger children.

Nintendo just has to better understand the market and how their new device will fit into that market.

1) Offer good value.
2) Stay profitable.
3) Cheap gimmicks are fine but if you go with an expensive gimmick then you damn well better be able to convince people that your gimmick is worth every penny.

It's already happening in front of your very eyes. Sony and Microsoft are prepping for it now. PlayStation now and Xbox live on PC are the starts of what will be The next Xbox and PlayStation platforms. And they will not be " PlayStation five" or "Xbox two"

I don't buy the idea that if the NX is some type of "fusion" console that bridges the handheld and home console market that it will automatically be successful, because these are two entirely different markets, and if it has the same poor 3rd party support and long software droughts that the Wii U has had then it's bye bye for good.

I agree that NX will mark the future of Nintendo because if it fails, the company will go through big changes: Iwata will leave (either voluntarily or forced by the shareholders), and right after him most of the current directives will also leave, including Miyamoto whose vision of Nintendo has been a key factor on how and why the last consoles from Nintendo have been the way they have been.

Because of that, a post NX failure Nintendo would be a different company. And I can see that new Ninendo going through three possible ways:

1-One last try. With a more simpler and direct approach,a  powerful console/platform and little-to-no gimmicks, they'll probably try to recapture the gamer market with a system on par with what their rivals will show.

2-Become a third party or a privileged second party. I can see Nintendo going both ways, to be honest, because if you don't develop for your own hardware, the best option is to develop for every other platform, but that demands bigger teams and a lot more testing to develop and launch quality products. Because of that and given Nintendo's reluctance to grow during the last console cycles, I could see them trying to get away with a special relationship with either MSoft or Sony (my bet is they would try it first with Sony since they sell well on every market) and launch their games only on one console. Of course, besides that, they will expand their mobile division.

3-Go full mobile. Quite simple, they'll stop developing console hardware and software and focus on their new mobile strategy.

Pretty much this.

The next home console should not be priced over $300 unless Nintendo makes a powerful hardware that third party wants to develop for. 

Even if more game processing is done remotely you will still need hardware at the user end to take that streaming data. It may be console prices will fall as more processing is done on servers but then playing games will get more expensive as you have to pay for server time. There are no free lunches. Many people may get inconsistent internet connections and it just may not work that well in much of the world.  I can see there being home consoles for 3 or 4 more generations at least before a game can be 100% streamed with low latency directly to smart tv's etc. 

Also there may be consumer resistance to having to rent game time rather than own a game outright. Also with VR latency is more obvious so this works against remote processing.

Mind you no reason the market can't supply the desired product to all users. Casual gamers with go for streamed games on 2D displays which are more laggy and not as good an experience. Hardcore mainstream gamers will want local processing and VR and there is no reason why the same game can't cater for both users.