I think Nintendo's biggest flaw has been their hard-line control of any game that comes to the system, whether it be the forcing of exclusive licenses in the 80s or the ridiculous censorship. They've also had a long standing policy on making things complicated for 3rd parties to make games for their system, whether it's due to the technology they use or the bizarre controllers.

Nintendo also misses the irony of trying to make their systems "for everybody" by not allowing games that target more Mature audiences. You can have both family friendly games on a system & games that 20 somethings might be drawn to.

That being said, they are still one of the best first party game makers out there. They could probably get out of the console business & not miss a step, even though they don't really need to.

I think they'll do fine. As long as they give us Zelda, Mario & Pokemon, people will knock down their decrepit grandmothers to get them. They also rule the handheld world, which I don't see being taken over by mobile gaming for quite some time.