I'd say advertising.

There's still a ton of confusion over the Wii U's name. Many people think it's just an accessory for the Wii. Nintendo needs to let everyone know that it's actually a brand-new system!

Marketing. That'll give it more mind-share.

Advertising.

Price cut would sell more systems. Nintendo can't make good commercials anyway.

Advertise. It's still the cheapest.

Well, at least not nowadays. Still waiting for them to remake this commercial for the new Smash Bros.

They did actually advertise last holiday season. I saw a reasonable number of commercials. Their sales were still garbage.

There's no sense in advertising a product that's too expensive for what it is and people aren't generally that excited about.

but I will say both because they have enough money in the budget.

Advertise. A price cut ain't going to do shit, the people who say they will buy the Wii U if it's cheaper are the ones who are only going to buy it if it is under $200, which quite frankly isn't an option, and I'm sure they probably wouldn't even buy it then. The Wii U finally has a decent library, and next year's looking to be good to it, so a GOOD advertising campaign would just need to highlight that. They can do it; a lot of their YouTube ads are actually half-way decent, and they do have tv ads for specific games, like Smash and Mario Kart. They just need to spend some of their war chest on getting ads on tv networks to highlight the enttire library of the console, not just a specific game.

I'll go one better, spend it on getting third party ports. It won't do anything for sales but it'll get them on a long road to recovery.