Nintendo situation is indeed pretty rough, the high-end console experience is no longer accessible to them.
There is hardware but there is also the overall environment, network infrastructure which lags its competitors a lot. I mean all its competitors, Android and iOS included.
iOS powered devices, Android powered devices, and Windows power devices (including the XB1) to a lesser extend, they all are going to offer functionality an overall ecosystem that nobody will be able to compete with, not Sony even less Nintendo.
It is not easy for Nintendo indeed. MSFT situation is not easy either, I mean they are fighting hard, pump a lot of money in and the improvements on the mobile front are minimal. Windows 10 looks good but competition is not standing still, the worse part for me is that Windows 10 gives really few intensive for publishers to develop more apps.
Where I'm getting is that it is easy for nobody. MSFT is gigantic compared to NIntendo, they have their pro business and they have Windows, etc.
Nintendo still has strength, strong support from fans, retro gamers, kids, they own the handheld market, a well known brand.
Now what to do with it? So far what I see is that on every fronts Nintendo refuses to compete, it quit fighting with Sony and MSFT (not a bad thing), but it seems that they are also not really fighting back on the retro gaming, kids markets, the handheld. Why that market see no growth in that era of mobile product cheap hardware and screen? They are refusing to evolve (Sony failed to adapt too).
They are cornering themselves, when I hear that Nintendo excuse for not divulging any information wrt the NX is so "competitors does not steal the idea", it scares me, every body knows what a home console is: a computer plugged into TV, you play sitting with a pad in your hands watching the aforementioned TV. A six years old have a good understanding of what a console is. The same applies to handheld.
Sometime I feel like NIntendo is spending its R&D money on everything but creating the type of devices their brand is famous for and in many regards defined: home consoles and handheld consoles. Everybody knows what a home console or a handheld console is, everybody but Nintendo.
Bashing aside, the fact that Nintendo next system is a home console is a bad omen as clearly handheld is where the growth potential is, that is their strong market. It is critical to do better now. Yes they can fail but if they wait soon enough iOS and Android gaming will win.
I wish Nintendo would have release both a handheld and a home console at the same time. If there must be only one device then it is the handheld first.
The choice of AMD have me thinking that Nintendo as it refuses to do what it takes to step forward and up its game on many fronts (it is not only their hardware), is going to have a complicated, extremely inefficient system but backward compatible. BC (supposedly) being the system saving grace (if everything else fails / gimmick fails). Meanwhile the open source Dolphin emulator runs lots of Nintendo games at quality levels NIntendo does not deliver on its own platforms,
not even close which is the really bothering part.