...as a hardware manufacturer? I'm starting to think so, and here's the best reasoning I can think of:
I am a stalwart fan of Nintendo, I've bought every console they have and played a huge number of their games over the years, and I adore Zelda, Pikmin, Samus and co. like you wouldn't believe, but I think I'm gonna miss out their next one.
In other words, if someone like me loses interest, then most of the hardcore who still love their Nintendo games may just miss 'em out altogether (assuming they didn't already jump ship because of Wii).
We're now in an era where games like Dead Space, Demon's Souls, Uncharted, Infamous, Bioshock et al are becoming the new must-have franchises on consoles, and the Zelda games I love so much are not compelling enough to make me buy hardware with so much compromise.
Not having DVD playback on the Wii was frankly a pain in the arse. But it made a kind of sense. Maybe everybody did already have a DVD player. No HDTV was a disappointment too, but that too was understandable, as at least here in Japan, HDTV has only just become the broadcasting standard this year.
But not having GC BC - presumably so that they can sell us it all again as DLC - and just barely keeping up with existing consoles oomph when it would be so easy and cheap to just push the boat out a little is very disappointing and miserly. The likelihood that trophy support and decent online will happen is pretty small too, am I right?
And finally, we have the question, can they survive without the hardcore? I don't think so. Tablets and smart-phones are moving in on their handhelds, the console competition is fierce, and the huge casual market they have tapped is an unknown and fickle quantity.
I think Nintendo Wii-U will be their last hardware. ;_;