How is nintendo doing do bad? They sold a mega crap tonne of wii's (albeit in former years).
I guess they don't sell games? The Wii's model was to use last gen hardware so they could make a profit on the hardware. sony/microsoft use more advance hardware, sell consoles at a loss (well at the beginning of the cycle) then make a wad of cash off the games.
I suppose if Nintendo wants to make some coin, they might need to put out consoles that appeal to gamers and game manufactures.
I think the Wii U will have a rough go. I imagine it won't be much more powerful than a ps3 or 360. Sony/MS will put out there new consoles, which will probably run circles around the wii u. The novelty of the motion controler will have worn off, and casual games don't buy every console generation. They probably won't see the need to upgrade.