Considering nintendo has yet to actually have a failure of a game system other than the virtuaboy (which wasn't even a core console attempt) I highly doubt this will be any different.
They've lost some console wars, but never has a product been a full-blown failure. Even the gamecube yielded fine profit.
As for this, I believe it will be a success and grant nintendo a second consecutive console war victory.
I still hate to think of the wii as a "victory" in terms of hardcore gamers. The sheer amount of crap that went out to that system, the lack of reputable 3rd party support and the lackluster hardware kind of cast a shadow on the console for me. Don't get me wrong, I think it is a fine system and some games were really fun to play. I usually don't mind less graphically beautiful games as long as they are well made and play crisply (for lack of a better term but you get my point), pretty looking is a plus. The problem is, however, that these gems were few and far in between all the shovelware that came out on the wii...hopefully there will be more awesome and less shovel when it comes to this system in which case I don't care what the games look like (as long as it isn't so bad that i get a headache)
Well, in Nintendo's defense, the NES had a crapton of shovelware and overall just bad games, and yet look at the games that were actually cared for, they're amazing. And when people think of the NES, I bet you 90% of people will always mention either a Mario, Zelda, Metroid, or some other big game. The same goes for the Wii. It has a lot of crap on it, but look at games like Super Mario Galaxy, Skyward Sword, Metroid Prime 3, Resident Evil 4, Okami, Mother Fucking Punch-Out!!!, Epic Mickey, Zack and Wiki, Sonic Colors, No more Heroes and the list goes on and on. People need to start seeing pass the bad, and look at the good, just like we do with the NES.