Nintendo still rules the mobile dedicated handheld market with the 3DS.
As for the Wii U, yes, it's a flop, but it won't kill Nintendo: they are a highly liquid corporation with conservative stock bonds and investment portfolios they have access to at anytime. They are far from going bankrupt, though their financial reports' tectonic shift from profit earnings to net loss puts a major question mark on their ongoing short and long-term goals.
Nintendo does need change, but I would never say "never" to anything in business: Nintendo can still recover from this, but its attitude does need some serious reflection on what today's market demands from it.
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