There have been a few rumors floating around that Nintendo would quit making consoles and develope games for one of the other systems. However, we now have proof that that is not so...
http://cube.ign.com/articles/383/383515p1.html
"We are developing a new home video game console with a plan to release the new system around the same time as rival makers do," said Iwata. "The PlayStation 2 debuted one-and-a-half years ahead of the GameCube. If we had launched the GameCube at the same time as PlayStation 2, the result would have been different. ... We will get ready for a (new) battle in 2005 although foreign game developers are now saying that rival next-generation systems won't come until 2006."Iwata emphasized Nintendo's plans to stick in the console industry by saying, "When we withdraw from the home game console, that's when we withdraw from the video game business."