It certainly can, but it requires quite a few things in order to do so.
Some rumors has it that it is a console with its own dedicated handheld, if that is the truth then they can ask a relatively high pricepoint and I suspect it will still sell a lot. How many people bought 3ds systems? well a new system with a console thrown in is not a bad deal, and vice versa, in truth it might be the solution to a lot of problems parents tend to have.
The console itself will likely be more powerful then the PS4, I am not sure you could even make a cheap that weak nowadays, unless you want to revert back to hardware-wise ancient chips. Newer better solutions are already cheaper.
It will not fly and outpace the other consoles if it does not have 3rd party behind it, it will be the biggest issue, if 3rd party goes onboard, and the NX shares architecture with the two others, it will be relatively easy, lets be honest, the X1 and PS4 have not exactly rocked to the world, give the general consumer base at large a better alternative and I suspect you might see many people simply sell off those consoles, unless they are dedicated fanboys (which most ain't).
Sadly Nintendo does have a horrible history with 3rd party, and some speculations with the NX not having a disk drive might turn some people away from it, they might drop the ball pretty badly aswell if the system is not near flawless at launch.
But give me a Nintendo system which has full 3rd party support and see me chug the PS4 pretty fast, Especially if the NX runs the games alot better, with better visuals.
In the end we know very little about the NX, if they make it too weak, too unappealing, a horrible UI or other hardware flaws (like a noisy brick) It could kill it before it comes out the games, if it is merely on the level of the PS4 or X1, then it will likely not (since the PS4 has sold a lot, being the only viable console for many countries).
But there is truth in the saying "never bet against Nintendo" They have been counted out so often, yet proceeded to surpass expectations. (DS and Wii, being the most recent examples).
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