They are still the king of mobile console gaming ... sort of. Tablet and smartphones are eating away their bottom line, and the trend will continue (the minute that Apple and Google decide to focus on mobile gaming in earnest will spell the end of Nintendo). The problem for Nintendo is that mobile gaming is an afterthought for Apple and Google. They don't need to do well in that area to survive, however every point of marketshare that Nintendo loses because little Johnny is fine enough playing games on his iPad instead of buying a 3DS hurts Nintendo incredibly. Everyone will have a smartphone or a tablet, so justifying a 3DS purchase is that much harder.
They make good games, yes, but it won't change the fact that they are in a lot of trouble.