Pie and Beans
Look for me on the local news, I'll be the guy arrested for trying to burn down a Nintendo exec's house.
I get what you're trying to say, but you've conveniently ignored the Wii in all of this. The Wii-personal opinions notwithstanding-that system reversed Nintendo's downward sales momentum in home consoles in a big way. But it was successful b/c it caught on to new tech that hadn't already worn out its welcome in other markets like smartphones and tablets.
I still think Nintendo can last in the console business, like you, but IMHO they need to really start pushing into an innovative tech like VR, wearable tech, or what have you, and do so BEFORE it reaches market saturation. Something they've failed to do w/ Wii U and it's "been there, done that" Gamepad.
You're correct here and I've argued as such that the WiiU essentially needed to be the Oculus Rift to keep them in the home hardware game. What becomes painfully apparent to us now however, is that we get to see what companies and tech start-ups Nintendo purchases in their financials and budgets. We saw the formation of the Wii with Nintendo picking up various motion control tech and also the 3D screen tech for the 3DS. Right now, Nintendo isn't making those moves and are starkly behind in comparison to mostly every other electronics company on Earth.
The Wii's success was about making things more convenient to non-players. A rectangle you hold like a stick is about as rudimentary concept as you can get. Since then however, the "convenience sometimes-gamer" has a smartphone for such experiences or a tablet. Nintendo would have to 'out-convenience" something like a phone or tablet they have on them at all times and an eco-system people are firmly rooted into with their music, books, films, and of course apps. Thats simply not going to happen. Wii was a one-time lightning in a bottle capture, and they fucked up on actually corking that bottle.