The company has enough of a cash reserve to give themselves some breathing room, but the lack of success with the Wii U is a serious problem. Luckily, the 3DS was the best selling console of the 2013 holiday season, or the hurt would really be on. Lot’s of people who are smarter than think Nintendo should embrace the tablet and smartphone markets, but I’m not so sure. To develop a quality AAA title takes millions of dollars, and many games lose money at $50-$60 a pop, let alone $5-6. Nintendo would either have to port their old classic NES games, which might not be a terrible thing if the controls were functional, or start to make garbage games that look like a free flash physics game from a decade ago. Seriously, many people have no clue just how inferior android/iOS games are compared to quality console releases.
They also really made a misstep with the Wii U. For one, many people don’t realize that it is an entirely new console; they think it is an updated Wii or the gamepad. Another problem is that it is approximately equal in “power” to the X360 and PS3, and those are in the twilight of their lives. After the new AAA titles for those dry up, there is not going to be much chance of games being ported from the PS4 or XBone to the Wii U. Still, Nintendo has time to come out with a new console in a year or two and survive the rough times. Blackberry on the other hand….