It would cost Nintendo a lot of money to invest into a console that is more powerful than the Xbox One and PS4 and it just seems pointless in my opinion.
Who is Nintendo's target audience with this new console? Hardcore console gamers? Because those people already have an Xbox One or a PS4 and they most likely aren't going to buy a brand new Nintendo console for "better graphics" and abandon their already large collection of games, friends, and achievements/trophies. Most of the exclusive Nintendo games on the Wii U really wouldn't look that much better on a more powerful console. Seriously we are talking about Nintendo games here. I can't imagine Mario Kart 8 or Super Smash Bros looking that much better on something more powerful like an Xbox One or PS4 let alone anything more powerful than that. They already look great and Nintendo has always been more about gameplay. Most people who buy Nintendo games could care less about anti-aliasing, resolution, FPS, vertical sync, etc. I would argue most average console gamers don't know anything about that stuff either.
The PS4 has been a complete success selling over 10 million units world-wide in an incredibly short amount of time so that has nothing to do with Sony's losses in fact their failing movie, music and laptop division is to blame for that.
Microsoft is one of the world's most valuable companies so I really don't think losing some money on a single gaming console investment is going to put a dent on their influence in the world.
What is Nintendo going to advertise this console as? Will it have 3rd party support? Will the online have voice chat instead of being a playground for kids? Most companies seem reluctant to support Nintendo because most people who buy Nintendo consoles only buy Nintendo games. It's kind of a double-edged sword. You have Nintendo making a console purely for their games so people buy their hardware for that but at the same time you alienate other gaming companies from developing for your console because it's so difficult to get people to buy anything else.
I think the Wii U is doing fine and they should just focus on possibly releasing a cheaper non GamePad version of the Wii U or something and if they seriously are going to release a new console it better be what I described originally on this forum.
An HD Nintendo console that is going to run games at 1080p, 60 FPS, 3rd party support, regular controllers with no gimmicks, mature online environment with parental controls only as an option, a huge online Nintendo shop that actually has a lot of games to purchase, and achievements and trophies (seriously everyone has them), toss in a brand new Nintendo IP as well to flagship the console. Possibly something a little more mature from Nintendo that would utilize their brand new super HD console's hardware.
Now I don't know a lot about tech, but I feel like that's wrong. If Nintendo was to make a console more powerful than Xbone and PS4 in the past to be released this year, it would be pretty expensive. But that's like at least 5 years ago. The tech industry moves very fast. I'm sure building that type of console now, to be released in a couple years (which is most likely what Nintendo is doing) would be considerably less expensive. Especially with nintendo's knack for making their consoles pretty cheap.
Also Nintnedo has stated before that they have no intention of competing with Microsoft and Sony. don't know who their target market will be, but chances are they'll still out last both of the other parent companies' console departments. like Ryudo said, both companies are totally feeling the mode right now, and while Nintendo was feeling the past two or so years, this past year was pretty good for them and they made profit. And then there's that whole 10 billion in the bank, stacks of hard cash, real money real talk stuff.
If (once) the two others die, Nintendo will most likely have many people forced to swallow their pride and pay their money to nintendo. it should give Nintendo an opportunity to re-brand the stupid image game journalism and opposing party propaganda has given them, since if the journalist try an continue on that line of thought they'll find support for their dumb hating clickbait articles in decline. Though I suspect they'll never get their exclusive coverage back (and they don't deserve it back).
See, it doesn't matter whether or not the PS4 is failing. If Sony fails, PS4 fails with it. It will either be bought out or it will die. Would be surprised if someone bought it out (I'm not sure something like that has ever even happened) but if it did it could end up with a decrease in quality, or a new direction, etc. All the things that come with that territory.
On the flip side, it doesn't matter if a company is immensely rich, if a division is losing too much money, it gets kicked to the curb. See: Zune, Internet Explorer (soon). They're not going to keep the division alive in some sort of stupid bold faced lie that it's actually a good idea for them to keep the division around. This is business, you don't look at your numbers and say "Oh we lost 3 billion in the Xbox division, but it's fine because the rest of the divisions picked up the slack and we made 7 billion this term!" You say "We made 7 billion this term but if we get rid of this stupid failing console we could have made 10 billion. So..." just like a job, if there's one guy holding the team back, he's gonna get fired.
Honestly nintendo has proven time and time again that they don't need 3rd party support to make money. In fact a decent part of the reason they lost money this time around is because they trusted third parties, and those third parties turned around and kicked them in the dick and then started talking crap and bold-faced lies. I f I was Nintendo I would not be looking to work with those companies again. Maybe we'll see more indie support or smaller third parties teaming up with nintendo, or maybe they'll do what they did with Bayonetta and Devil's Third. So they don't really matter. And if you have any doubts go back and look at the Wii U reveal trailers. look at EA talking nintendo up. And showing this huge line of supposedly great games. Then look at the actual launch window. look at the number of those games actually came out. look at their comments very soon after the launch, and how they did a full 180 in terms of what they said about the console. I don't think I even need to go into Ubisoft and they're Rayman legends watchdogs crap.
Lol at you implying voice chat on Wii u is the only voice chat filled with kids. That's funny.
And so we come to your final comment. That Nintendo should assimilate. Become the next Xbox Sony clone. This has been discussed several times. It would be a stupid move on Nintnedo's part. You said it yourself, Microsoft and Sony already own that market. people who want that environment already have it. Not only that but they've made it impossible for Nintendo to enter that market as long as they're alive with their propaganda. Nintendo's name is crap to that scene. If they start trying to brag about great hardware, no o will believe them. Did you see NeoGaf's comments about how they managed to get smash running 1080p 60fps "Oh it's cause the game looks like crap. Low res bad quality textures." Then there was that guy who assumed that 1080 60fps was easy to do because nintendo can do it. Then there's the fact people are still saying that the Wii u isn't as powerful as last gen. When that has been proven several times to be not even close to the truth.
Fortunately Nintendo knows this and would not do such for those reasons. Also as Miyamoto recently said that's just not what their company is about. their company is about innovation and creativity. Of course they want to make money but that is their preferred method of doing it by far. So we know this won't happen. We'll get some sort of "gimmick", something that makes the console unique, and it will be glorious. Same as the Gamepad. Sure, it's not used as much as it could be, but who cares? Ask around the Nintendo communities, the vast majority of Wii u owners (myself included) love their gamepad, and would sorely miss it if Nintendo took it away. Even when it's the abre Minimum of map and inventory it improves the flow of the game immensely. It makes the Wii U browser easily the best of all the console browsers. And then the times it is used creatively it feels totally worth it. I've owned my Wii U since Chrsitmas of launch year and not once have I ever wished that my Wii U did not have a gamepad. That thing is the son I never had.
If there isn't a gamepad on the next system there will have to be another "gimmick" to fill the gamepad shaped hole in my heart.