Let's not underestimate Nintendo here; they're the only ones left from the 80's; Sega is gone, Atari is gone, Neo Geo, Spectrum, Amiga, etc; none made it.
And yet with the Wii Nintendo launched a well priced console that didn't cost the earth, didn't have hard to make hardware that kept crashing (RROD) or making losses years on end (PS3), and relied on what makes a good gaming machine: innovative and entertaining games.
Sure, the hype was all around the Wii Sports and lately Wii Fit and little more, and had it's time - although to their credit they were able to sustain it for longer than I thought possible.
Now consider this: with the cash pile Nintendo got from the Wii, compared to the initially RROD Xbox360 and all the millions MS had to spend to repair them, and the money Sony lost on each PS3 until very recently, Nintendo could break the cycle and leave Sony and MS in the dust - literally. Why ? Because MS and Sony are just now copying Nintendo's control system and still relying on their respective consoles to last a few more years as they are to recover the losses they incurred with what I said above. Nintendo can lauch a brnad new console next year, with a much faster processor than the PS3 and superb HD graphics along with their jaw dropping feature.
If this happens, MS and Sony will be like Nvidia right now: trying to catch up with AMD!