The author may be correct that Nintendo is in trouble and will lose against Apple, Google, Samsung, Sony, Microsoft, etc. His mistake is in thinking this means

The author may be correct that Nintendo is in trouble and will lose against Apple, Google, Samsung, Sony, Microsoft, etc. His mistake is in thinking this means that Nintendo needs to do something right now. As a thought experiment, imagine a bad scenario for Nintendo in 5 years. They've been steadily losing market share and have eaten into their cash reserves. They've launched a new console and a new handheld that are largely seen as a flop. What are their options? Drop out of the hardware business and just be a game publisher/developer or sell themselves to another company. Basically the same options they have now. So they might as well stay the course and see if they can come up with another hit as it's not really costing them anything to do so.