Nintendo is all but irrelevant by now.. the gaming you love is dead. The developers are the ones who say it best, they have to earn their money, and the big money is NOT with the "hardcore" crowd
To be fair, games are costing more and more money whilst the cost of buying that game remains the same, so the days of million hit sellers are a thing of the past.
The problem is kind of what Tad mentioned. Shorter games need to exist for both the developers sake (budget, experimental ideas) and for the benefit of those of us who can't afford to spend 40+ hours in a game any more.
Call of Duty and AssCreed don't need to cost millions these days given that the former is just a multiplayer bang bang fest (something PC gamers have enjoyed since Unreal) and the latter is just story crap with collect-a-thons that are useless.
It may sound strange, but I am glad that Candy Crush exists, as it has that Arcade feel and being a shortish game, you can play whenever (fuck in app purchases though). We need games like that (not the IAP thing, but the arcade like quality) to round out the games that express themselves on bigger budgets.
Nintendo should still exist, as they somewhat provide that simpler experience and I don't believe Nintendo Employees are paid all that much compared to the other companies (still more than you and me of course, but probably smaller than most third parties), which is likely why they can survive on a smaller fanbase.
To be honest, I wish SEGA added a console in the race just to give gamers an arcade experience that some of us miss (not exactly competing to Sony, MS etc), which I believe SNK targeted all those years ago.