I’ve been beating the drum for Nintendo to start spreading its software across platforms and moving away from expensive hardware. They’ve fallen behind on consoles and unless they reinvent, like they did with the Wii, they will continue to bleed money.
In my opinion, Nintendo should take a Sega approach: but their popular titles on iOS and Android, which will limit the reasons to purchase a console, yet generate tons of revenue. They may even want to consider distribution through Steam, for PC gamers and the upcoming Steambox. They should not be afraid of losing DS business to iPads and their ilk, as this is already happening. People who love DS will buy it. The face it, they can build a richer experience on Apple’s better hardware, while still reaping the benefits of making money.
I’m not saying they must do this to survive, but I think it’s a pretty good strategy. They can gain profits, while they create the next big thing to take the market by storm.