I think Nintendo is more like the mouse that knows it's cheese has been moved, and keeps following the trail of crumbs, but never catches up. Online play, mature games, disc media...Nintendo always gives in and makes the changes, but the problem is it often waits too long.
In some ways, I like Nintendo's stubborness. Many people (particularlyon-the-fence Nintendo fans) feel that the solution to Nintendo's problems is to go all-out in the areas where it is perceived as weak. One such typical idea is to improve Nintendo's image by adding gore to Mario, Metroid and Zelda and market them towards adults, but would that really work? It's just as likely that the general public would perceive Nintendo as a try-hard and Nintendo's loyal fans would jump ship for ruining the franchises; parents who purchase Nintendo systems for their family-friendly image would also probably switch to Sony. A lot of people felt Nintendo had to announce a new Gameboy with comparable power after Sony announced the PSP, but don't you think the DS is a better way to fight Sony than a GameCube-like handheld retailing for more than $300?