They need a complete relaunch at this point. If they can't somehow take the price down to $199 (with a hardware redesign, drop gamepad, etc.) by the end of 2014, then there's no hope to turn things around. Continuing down the current road will simply drive this console into the ground. There is no way to create momentum with such a failed strategy.

Yeah... I think they should re-do the packaging to de-empahsise the Wii.  It could have Nintendo in big letters, a small Wii and a big U or something of that nature.

The main problem with WiiU (from the consumer side) is its IMAGE.

Many people who already bought the original Wii are fed up with the gimmicky motion controls (which is also why Kinect is failing!), and those causal people don't pay enough attention to realize that WiiU is a DIFFERENT console. They only think that it is a souped up Wii, and the big N gives the worst effort to market outside Japan.

They should somewhat improve the controller and improve it as a stand alone handheld. It would be insane if they should turn the controller into a 3DS or 2DS and bundle it with the system. This way, they will guarantee much better sales numbers.

The GamePad needs a major redesign, especially if it's as costly as Nintendo claims it to be. The console I think is a good size already, that probably doesn't need too much of a redesign, (maybe give it a more distinct look instead of making it look very Wii-like). A slimmer Gamepad could reduce the price of the box and not cost Nintendo any more than they are already losing. And a major advertising campaign needs to take into effect. If they keep the Wii U name, they need to REALLY emphasize that it's a new console and not "The U controller for Wii".

I believe it's better for them to save all these ideas and put on the successor for a successful generation.
As I see, this one is over for them. Releasing HD upgrades and some minor and mainstream games could help, like Animal Crossing, to continue this generation trying to fill the release schedule.

As a Nintendo fan, I prefer them to focus on the successor and avoid to struggle it in sales and games, like this time.