Nintendo will do fine, but they are going to get taken down a peg. They put out the Wiimote, and then decided that that was more then enough innovation for the decade. Sony and Microsoft both have innovated elsewhere, and are poised to dethrone Wiis motion controls. As video games become more mainstream, even PS3 and 360s become more mainstream, ruining that casual advantage. Plus, Wii is basically a last gen console with motion control, and there 3rd party stuff is not up to par. Age is showing. Of course handhelds are Nintendos place of undisputed power, and between that and Wii sale already, so they have the money they need, and mario, zelda, etc guerentees that Nintendo will always survive. Besides, Nintendo isn't going to retreat back to other money making avenues, because video games are there whole business. My prediction is that as this generation enters the twilight years, Wii will remain on top, but sales for that single year won't show it. Next generation, They will put out more powerful, but still least powerful of the bunch, system that looks a lot like the initial launch of the the PS3 in robustness, without the potential to get so much better later on in the generation. Nintendo will scramble, put a band aid on there wounds, draw in some customers with there franchises and brand loyalty, and end up in the black, but no where near as far in as Sony and Microsoft. Then, hopefully, they will smarten up.