The barrier to entry for PS3 was always price. You had all that third party content coming, you had Sony's first partys bringing tremendous generation defining games, but it was Kutaragi's stretching of the budget to create that $599 behemoth that was always the stalling point of the PS3. Blu Ray laser diode costs came down as manufacturing went up after they won the format war, they went hard to work at shrinking the internals to offer the PS3 Slim, and really cut back on premium un-needed materials.
Theres just no roadmap to that kind of "way out" for Nintendo. Its not a shockingly gigantic price, nor can they get costs of the entire GamePad and that streaming tech down to some throwaway price either. If its games, then Nintendo just doesnt have the infrastructure to match what Sony's huge cabal of first party brings to the table. PS3 gen they were still adding with studios like MediaMolecule and Suckerpunch. Alright we've lost a few on the way into next gen, but Nintendo is so far behind the curve they've only just started expanding as of last year and I don't see them buying up new western studios en masse.
Worse still, the PS3 audience is the one that it always was from the PS1 to PS2. They lost some to Microsoft no doubt, but that hardcore GTA, Gran Turismo, COD gamer was still in the market. Nintendo meanwhile has completely lost the casual market that made the Wii a success. Theyre gone, app'ing it up seemingly on phones and tablets, so Nintendo has to fight over the hardcore table scraps left behind Sony and MS who arent really skipping a beat right now. You've got the Nintendo lifers buying the system right now for a Mario and franchise fix, and nothing beyond that.
Nintendo would have to really reach into that 10 billion to turn this around, and I'm seeing no signs of that right now and new dev startups take at least 2 years to get up and running.