At this point in the game, Nintendo is going to have to do something and in my opinion that is go the software developer route. I think they'd make perhaps the most successful software developer out there, hands down, because their games are just absolute gems and loved by millions and millions of people. Not to mention they would no longer have the headache of worrying about creating hardware anymore. Hell, let the big boys create the hardware, Ninty charges them a stack of diamonds to have their beloved games on their boxes. And we know Microsoft would pay for them.
I still remember a while ago, reading an article about Microsoft offering to purchase Nintendo, but Ninty was a much more dominant force back then so they declined the offer. The Nintendo of now however....may be a bit more open to a hefty proposition if their current standings are anything to go by. An announcement of that magnitude would be glorious though. Glorious indeed!