I think reputation is kind of subjective term in this case. If you mean bad reputation with nerds (I don't mean that derogatorily at all, more of a compliment actually) sure, yeah, 'course. Lack of third-party support, worse hardware, subpar online services. They want the best of the best of the best. If you mean the general household? Dang Nintendo's bigger now than it ever was.
They expanded my favorite medium into far more households than it ever would have been in, and probably (yet again) helped to turn around an inevitable crash of the industry (that we are more than likely headed towards) from no longer catering to a niche group of the populace. Instead of catering to gamers, they made new ones.
I'm kind of backward though, back in the SNES days I was a SEGA boy, and I never cared for the NES. N64 was okay, and the Gamecube was fine. I've owned every console, but never loved one as much as the Wii so far. I guess I am one of the lone core-gamers that think Nintendo's best work has been on the Wii, it's just that everyone else basically pumped out trash and abandoned it.
Which, yeah, if you aren't into their stuff (and a lot of people aren't, just like a lot of people aren't into a lot of things) what can you turn to on the console? Nothing. Nothing at all. Heck I have all three consoles because I feel they all have unique game-changers on their consoles... but what if your household can only afford one of these?
If you have a kid, you're likely going to get the Wii (because, let's face it, there's nothing of substance or quality for children on the PS3/360 unlike when we were kids). If you're a gamer who likes racing/action/mature/FPS/WRPG/Online games, you have to turn to the 360/PS3. Sure Nintendo has games in each of those genres, very good ones, but they don't have a variety to pick from.
Still I wouldn't take the internet as gospel, New Super Mario Bros. Wii and Mario Kart Wii are... well, two of the best selling games of all time. They profited on every console sold to a massively selling piece of hardware that was 10-years old on the inside. They brought motion gaming to the table (and then dropped it--but that's another discussion), and have created some of their top rated content of all time for the Wii. Heck, they even managed to take a disastrous scenario with the 3DS and flip it on it's head and start selling a product that should have died like hotcakes. Their "reputation" amounts to little more than still being the all seeing overlords of the gaming universe. Even people who don't like Nintendo, can't shut up about Nintendo.
I doubt their money cares. Why should you? We're gamers, enjoy the games.
If Nintendo can stop falling behind on the tech so developers can actually put their games on the system without compromise, we can get Nintendo ports of actually GOOD titles.
I'm inclined to agree, but, much like I just said, when it comes to Nintendo, conventional wisdom never works. When the Gamecube was stronger than the PS2, and it did receive ports, none of them sold. At all. It received freaking classics that were leagues beyond their counterparts (RE4 GC vs. PS2), and they still didn't sell. Likewise, the DS was infinitely weaker than the competition, and gets a lot more quality content from outside developers than the PSP ever did.
Third parties just can't sell on a Nintendo console (handhelds they do fine on). They can't. Part of that has to do with (honestly) the amount of content that Nintendo themselves brings out and who their userbase is. A lot of their product is really high quality stuff. They, effectively, have a cannibalization of their own market. If new Mario's release at the same time as a Metal Gear game, Metal Gear isn't going to sell, at least, not to Nintendo's fanbase. When third-parties see this discrepancy in sales figures they feel no need to release their content on Nintendo's platforms. Third-parties have been saying this for years.
Why invest where you can't sell? You can't sell there not because of the hardware much of the time, but due to the demographic you're reaching for. Sony ads cater to a certain type of consumer, Microsoft to another, and Nintendo to their own. The big three each have a split piece of the market.
Nintendo's smartest move was going the "cheaper hardware" route. They can push it, even if other devs can't. Meaning more profit from consoles, cheaper price points so more people buy those consoles, and more resources to develop with for future titles, which, in turn, sell more because they are more well made.