Nintendo can't compete simply put. They took a path into niche marketing and are paying the consequences. While the Wii and WiiU are excellent consoles, third party producers aren't interested simply because the consoles have a lack of power and complex interface.
Additionally, Nintendo has generally lacked any memorable games in the last few years. Yes they have had good ones, but for the most part they have been remakes or very similar to other relatively new games that have nothing to do with each other story wise (ex. Mario 3D Land and Mario 3D World). If Nintendo really wants to make a turn around, they need to get on par with their competitors. The console is marginally more power than the Wii (which was marginally more powerful than the gamecube) and thus it can't compete graphically.
Nintendo also made a mistake in appealing their games to young children and family, meanwhile the average gamer is 30 years old and there is a lack of captivating, complex games that would appeal to an adult. Sure, rescuing a princess is fun as is driving a kart, but we've been doing that for decades.
Finally, Nintendo has more than less had the same people in the same positions for decades, they need new blood to come in and provide new and fresh ideas.
Edited by Archangel, 24 January 2014 - 07:20 PM.