I have been wondering what Nintendos plan is for years.
With the Wii, they lost 3rd party business and the WiiU was obviously not equipped to regain it.
Sony and Microsoft have a huge head start with PSN and XBL, they have gamers and communities connected to their eco systems, gamers won't switch(no pun intended) system lightly.
I think Nintendo has actually given up on becoming a 3rd viable platform for 3rd parties again. Its basically impossible for them to compete with Sony and MS at this point.
I think they made the right choice to not try to compete and rather go for affordable hardware. They don't need to get into the teraflop race.
However, I think that focussing on their own Games won't be enough. The WiiU showed that Nintendo games alone pull in 10 maybe 15 mil people, I don't think thats enough for Nintendo.
Will be interesting to see if they have something up their sleeves.