I think Nintendo are aware of the hole that they have dug themselves into, and we've been seeing changes to the company ever since Iwata stepped up to the plate. Personally, i think Nintendo is on its way up, and possibly in a few years time they can be number one again.
1 - Zelda preorder deal has been very successful.
2 - Get one game free with a new gamecube deal.
3 - Amazingly slick looking, heavily marketed Platinum GC.
4 - Amazingly slick looking, heavily marketed and very successful GBA SP launched.
5 - Much better PAL conversions and great Zelda, Metroid bundles given to Europe.
6 - Zelda added to free deal in US.
7 - Royalty fees lowered to encourage third-party support
8 - Splinter Cell - among others - pushed forth to be released at the same time as the PS2 version!
9 - Namco's Soul Calibur performs best on Gamecube.
10-Relationship with EA strengthened.
11-Final Fantasy on its way to Gamecube.
12-Metal Gear Solid GC finally mentioned.
13-Actual Nintendo officials finally recognizing how important 3rd-party support is to survive the console wars.
14-Nintendo have the top three best selling games in Australia.
15-Nintendo Europe are putting 5 million Euros behind Zelda advertising campaign
16-Nintendo are supplying us with some damn good games, some of the best games ive ever played are on GC.
17-Resident Evil exclusive to Nintendo GameCube.
Now lets look at Nintendo's E3 2003 lineup;
Original EAD Franchise(s)
Mario Kart GC
Mario 128
Pikmin 2
F-Zero GC
Kirby's Air Ride
Pokemon
Animal Crossing 2
Star Fox Armada
Donkey Kong GC
Wario's World
Mario Golf GC
Mario Tennis GC
1080 Avalanche
Fire Emblem GC
GC Wars
Mother 3
Too Human
Original Silicon Knights Project
Metroid Prime 2
Game Zero (Zoonami)
Custom Robo GC
Giftpia
Sonic Hero
Billy Hatcher & The Giant Egg
Virtua Fighter Quest
Joy Carry
Skies of Arcadia 2
Baten Kaitos
Soul Calibur 2
Tales of Symphonia
Metal Gear Solid
Resident Evil 4
Killer 7
Viewtiful Joe
Dead Phoenix
Final Fantasy: Crystal Chronicles
Star Wars: Rogue Squadron 3

I dont think ANYTHING can compete with that incredible list of games. Especially since they are all EXCLUSIVE! I only see good things in the Nintendo Gamecube's future, just wait and see. Nintendo ARE waking up, and they are starting to realise that it isnt 1988 anymore. Just wait til E3