revisionist sugarcoating...
The reason Playstation even exists is because Yamauchi was acting like a stubborn oligarch. Nintendo WAS the home console industry, but because of their complete miscalculation of their own standing, they were beaten into a niche and lost all support (except a few scraps like Quest 64) for multiple generations. In fact, I'd say it took them until the Switch to truly clean up that N64 mess. Iwata said that Gamecube was a failure and they couldn't continue like that at the end of it. If that's not a disaster, I don't know what is. The handheld market saved them.
(pic is all I could find, since all the old links to that news seem dead)
As for 3ds, I didn't say disaster, I'm not the original poster. However, it shows that they keep making severe mistakes even after a high. Losing half your audience (DS->3DS) is a fuckup. PSP was always deemed a failure by Nintenboys, yet 3DS was about on the same level. Reggie recently said that Nintendo would've been toast if Switch didn't break though. Obviously pointing at the WiiU, but if 3DS was as successful as their marketing tried to paint it, I don't think he would have said that.
Anyway, I don't even think Switch 2 will fail. Current Nintendo is too conservative for that. It's gonna be a safe successor with safe games that the OP demands. In fact, that's what makes this console warring "oh no cinematic games everywhere" take even more ridiculous. The best thing you hope for is Mario Kart NINE and the rosiest thing you can think of is a Donkey Kong game? lol. I actually wish Nintendo would be in a failing state like Gamecube again, where they tried all these crazy new IPs and revamps of their old formulas instead of just the predictable mascot games.