They'll need a lot more than just one console to turn it around. It's a curious decision to keep their console department around, because it doesn't look like it's making a ton of money compared to the rest of their ventures. They have, what, music labels, cameras, phones, TVs and radios? I wonder where their consoles are ranked compared to those other departments, in terms of profit. That is, of course, counting games, but I don't know how big a share of the sales Sony snatches from those.
Being bought by Nintendo would, at least, put an interesting spin on their games. But I suspect it would do more damage in the long run, at least for the games. Nintendo is associated with family friendly, pick-up-and-play games. Not grungy, serious games as Sony carries. That's not to say Nintendo doesn't have its fair share of dark games, but it's not what they're renowned for. I imagine the sudden shift in image would confuse people too much. Same thing the other way around. People would hesitate to buy a Nintendo game published through Sony's brands, because they have different expectations.