Nintendo needs to understand that the majority of people simply aren't interested in having to pay $300 for a machine that plays the same old Nintendo games we've had since the eighties that come out every 6-8 months with crappy services to support them. People want access to a wide variety of different developers and franchises on systems that HAVE competent services, something Nintendo refuses to give.
There's no value in their hardware in terms of diversity, and their IPs are not strong enough to float the boat on their own as the U's sales have shown. Nintendo consoles will forever remain niche if they only remain the home for more Mario, Zelda, Smash, Kart, Pikmin, and Starfox.
But that's what Nintendo appears to be content with, so I hope they're happy with a very small piece of the pie.
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