the sad thing

Get what? The Revolution?

As far as I can tell, the main thing that is keeping Nintendo afloat is its domination of the handheld market. The PSP is doing well, true, but at a higher price point than the DS and with a poorer selection of software (not to mention that the GBA has tons of games for it), Nintendo still has the lead in handhelds for now. They are also making a lot of money off their never ending supply of Pokemon titles.

Nintendo needs to be getting decent third party support to survive in the console market. Capcom did support the GC, but that kind of backfired in the way due to low software sales for a lot of their originally GC exclusives. Still, it's great that more ambitious titles like Killer 7 and Geist usually are developed for the GC over other consoles.