Hmm. Their console sales for the Wii U are awful, but they aren't near going bankrupt. That company has more than a sizable wallet to allow for some short term bleeding.
Rebranded marketing and an increased push for more first party titles, combined with an approach toward Indie development would likely help the console. Super Smash Bros is likely going to drive sales upward this spring (supposed launch time) and we'll see how many titles they can have prepped for next winter.
While they need to have changes internally that promote a better realization of where the market is heading, they can afford to bleed some money in the short term. I'd expect some alterations especially if they keep down this path and hopefully they won't necessarily have to leave the hardware space. It may be a possibility however and even if that occurs, Nintendo is like Disney. Their characters are incredibly loved, well known, and reputable for their quality. They can find a home on all consoles and that would drive Nintendo sales through the roof if that day ever comes.
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