Also... Nintendo needs to fail in order to realize that people needs graphics instead of good gameplay.
Nintendo needs to realize that both are necessary to stay relevant in a changing market. Their software doesn't release fast enough to maintain their console ecosystem, and their console itself is not developer friendly because it's
1) Underpowered compared to even it's own counterparts when it was released, so developers despise the idea of having to spend so much money pairing down their titles to run on it.
2) Doesn't utilized now standard x86 console architecture. I bet AMD tried to convince them to go with an APU since they knew what was coming down the pipe from Sony and MS.
3) Nintendo has failed to create an online service of any weight to compete with PSN or Xbox Live.
4) The tablet idea is sort of stupid when considering the added cost and lack of real utilization, with the exception of game streaming. But, TVs are cheap.
5) Hardware backwards compatibility in hindsight only added a poop-ton of cost and foolishness in dealing with a tired and old CPU architecture that can't simply be made competitive by tripling the core count and a bump in clock speed. Wii GPU had to be integrated into the GPU die.
Software emulation would've made more sense in that there already is a solution for that: Dolphin Emulator. Dubious legality aside, there is merit in Nintendo hiring the Dolphin developers to port the dedicated emulator for GC and Wii games. Even modest x86 PC hardware can emulate those systems with relative ease and minimum bugs, especially on a single platform, so it would've been another benefit of going x86. Gamers would've appreciated the increase in game resolutions and framerates without the BoM cost of having hardware backwards compatibility while having the possibility of a better architecture in x86 + GCN.