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Something which has not yet happend.
The NES sold about 60 million copies and the SNES sold about 50 million. By the 32/64 bit period in gaming the whole number of the market increased. The [Nintendo 64] got beaten by the PSX sold over 90 million copies and the 64 sold about 32 million copies. 32 million console sales still brings in alot of money though. Nintendo's latest home console is the gamecube which has so far sold almost 20 million copies, very similar sales to microsoft's Xbox. The PS2 beat them both with over 100 mllion sales though. 
Nintendo's game boy handheld console realeased in 1989 is the highest selling console of all time and sold over 150 million consoles internationally. The game boy colour sold over 1 million units in Australia alone and worldwide sold more copies then the 64. The game boy advance and gba sp sold roughly 50 million systems world wide. Nintendo's newly realeased [Nintendo DS] has so far beaten the PSP's sales but the PSP was realeased alot later, so the PSP may take over [eventually].
Nintendo's next console to compete with the PS3 and Xbox 360 will be called the [Nintendo Revolution].
The truth is, Nintendo's games aren't aimed at kids but for all ages and people who would like to play a fun game, regardless of how much violence it has. (Which is often turned down by Sony Fanboys, 9 year old casual gamers.)
Nintendo say they cherish their [hardcore gamers] but want to increase the total gaming population. But making a [revolutionary] system and drawing in casual gamers are two completly different things. Though we can not yet say for sure if the rev will be any good, if it is good it may still die (It's happend before.)
Even if Nintendo's Revolution fails, they currently still own most of the handheld market, and if that failed they could always become a software only company.

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