All the doom and gloom about HD gaming dying or getting replaced is a little bit exaggerated.
Nintendo might be raking it in, but it the gaming industry isn't about the console war. Sure, the goal is to make as much money as possible given the market, and it seems Nintendo has hit that goal and lifted the bar for everyone else to hit, but as long as publishers/hardware makers are hitting and exceeding their quarterlies, then they win too.
The danger that publishers are going to create nothing but shitty waggle shovelware is alleviated by the fact that, apparently, it's hard to make shovelware sell if your name is not Nintendo.