They've lost market share, yes, but they've still got the vast majority of the DS/Wii cash.
One of major criticisms, from the outside looking in, is that Nintendo didn't seem to invest those profits back into the company until years after.
Investments
+ Built Kyoto Development Center to house 1500+ hardware/software developers (2014)
+ Increased graduate hires / Mid-Career hires (Development Sector)? (Not sure how significant of a spike)
+ Restructured all Kyoto Development Personnel (2014)
+ Increased world wide personnel (business+logistics)
+ Establishes Nintendo European Research & Development Inc. (2012)
+ Establishes Nintendo Network Services Inc. (2013)
+ Increase main internal development by filling production teams with more contract / support agencies (2012)
+ Buy affiliate stakes into new technology companies like Pux Corporation
Work-in-Progress Goals
+ License IP to non-gaming products for revenue
+ May enter mobile market to leverage IPs
+ Release QoL products (2015)
+ Unified software architecture for next console / hand held releases (2016-2017?)'
+ Experimenting with F2P and Subscription Models for niche IPs
+ Amiibo figurines
+ DLC market
+ Still investigating how to penetrate atypical markets like China and Brazil
I think the consumer will start seeing these concepts with a much better understanding around Q4 2014 - Q2 2015. Nintendo will also start potentially seeing an increase in revenue as well.