The casual audience has, for the most part, left consoles. The problem here is that Nintendo has made a console that doesn't appeal to the core gamer, the ones who are still out there buying consoles left and right. There's a HUGE console market out there still, as PS4 and XB1 sales has proven, but Nintendo is making a console instead for a bygone demographic. They SHOULD have had a fleshed out online feature set that appealed to core gamers. They SHOULD have fleshed out and expanded their IPs to include those more "mature" audiences who, like it or not, buy and play console games. They should have had increased media functionality with local media playback and Blu-Ray/DVD playback. They should have gotten rid of Miis and, more importantly, the Wii name. The Wii name is for a demographic that no longer wants consoles.
I still WANT Mario games, and Pikmin games, etc. But Nintendo NEEDS to realize that their IPs need massive expanding. The third parties aren't coming, so MAKE a great mature action adventure game in the vein of Uncharted, MAKE a great first-person shooter with fleshed out online play and a great campaign, MAKE some great sports games. I just WISH Nintendo understood this stuff.