While Nintendo has helped bring more casual gamers into the market, they haven't really saved it. IMO they are pretty much catering to the casuals, and not people who have given the industry its backbone over the last few years.
For example (which I know a small sample isn't representative of anything as a whole, but I think its a decent anecdote), in my dorm hall, we have a Wii, 2 Playstation 2's, 2 N64's, and an Xbox 360. The people that have PS2s mainly use them for Guitar Hero, and the N64s are rarely played. I would consider myself to be the only really "hardcore" gamer out of the bunch (although one kid does play Guild Wars alot).
When the Wii came in, we all really enjoyed it, especially playing Warioware and Wii sports together...for about a week. We soon all got very bored of it, and it seriously hasn't been touched since, even by the kid that owns it. On the X360, however, we have consistently played pretty much the last month and a half. What game was able to trump Nintendo's new appeal to casuals and next gen control scheme? Worms HD. Seriously, for the $10 I spent on Worms HD, we have had dozens more hours of fun than we enjoyed playing WiiPlay, WiiSports, Warioware, and Trauma Center.
Unless Nintendo develops multi and single player games that have lasting appeal to casuals and hardcores alike and don't just rely on the Wii-mote to be fun, I really don't think they will be saving anything.
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