I'm just speaking in general terms, Nintendo cannot function as a hardware maker by being (a distant) third place in the console race. This might have worked in the past when the portable division for Nintendo was selling like 15-20 million units a year like the GBA was and the DS was crushing, but Nintendo's portable are now on decline too. That means that console division needs to stop f*cking around and/or waiting for miracle controllers and get back to *work*.

Third place is not a tenable position for Nintendo in other words if they are serious about staying in the hardware biz.

Microsoft is only really strong in the US. Add to that the fact that their main console IP, Halo, is declining too. With NX, Nintendo needs to aim for 2nd place minimum. Sure, of coure the 1st place fantasy would be nice too, but Playstation is likely far too well entrenched and global of a brand for that to happen most likely. So lets set that aside for the moment.  

But Nintendo can take MS IMO. Especially in Europe and Japan *if* they act soon and act decisively. NX should be out next year, it should be front loaded with big gun Nintendo IP, and they should push for as much 3rd party support as possible. NX should also be a large step more powerful than the XB1, leaving MS with the weakest hardware by far, and they should also anticipate MS trying to rush XB2, by making NX future upgradable. 

The first year for NX is crucial, they need to come out swinging and sell a lot of units. IMO, Microsoft just isn't on top of their game now, it's time to push them into 3rd place, which may even trigger them exiting the hardware business, which for Nintendo would then give them a lot of breathing room (finally). 

Well, japanese third party support seems to be in good relationship with Nintendo. If they can get Resident Evil from Capcom and Final Fantasy from Square they are going to do good. (it doesn't need to be exclusive, just multiplatforms)

Now, to be on real shape worldwide they need western third party support on board: EA with Madden, Fifa, Mass Effect, Star Wars, Battlefield. Ubisoft with their next fad as AssCreed looks like to be on decline. Activision with full CoD support. Bethesda with TES and Fallout. Rockstar with their open world games.

They need all the big games possible to give confidence to the NX. Now, do you think that the cloud gaming patent is something interesting for third parties? How would that work for them?

It will probably be about the same...... Nintendo does not care about "power"

Next Nintendo console will be 250$ Day 1 and roughly on par with an Xbox One.

the Wii u had those games and it did nothing for them. Is the OP serious? Even if NX got those games, so what? They will be available on THREE systems that anyone wanted to play those games would have already had for years. I'll say it again, it wont be bad if those are on NX but lets be more realistic. Outside of a few NX only owners (they wont be a lot of them) who will buy these?

Also when you say take MS down, how? In sales? Wii U got trounced with a year head start, what will happen now that they are late to the party?

They need to acknowledge they need to compete. Trying to be "cute" and a special snowflake is fine, but they have to draw a line in the sand here. Video games are their *main* business. Being in 3rd place in the console business while the portable business is declining is not acceptable. 

I think their strategy in the past was to appease MS/Sony and let them basically have the primary console audience, this was a mistake. 

MS has a lot of money, and I think Nintendo was intimidated by that, not wanting to go head on, but I think they need to simply accept it's kill or be killed. 

NX needs to outclass the XBox One. No ifs, ands, or buts. Nintendo needs to get over MS being something special ... they make a lot of mistakes just like everyone else, and can be taken down. With Halo declining and MS not being able to expand their brand much outside of the US, now is the time to jump on them and reclaim at least a 2nd place spot (for the long term). 

People need to start having more kids to love Mario. Do your part Soundwave. Unleash that sperm bank to all the lonely women out there. Produce the new Nintendo generation!!

I dont think that was their strategy at all. They had no strategy, that was the problem. They were content, arrogant, stubborn and a little lazy IMHO. They were expecting Sony and to a lesser extent MS to be another Panasonic and just fail on their own and disappear. Well not only did that not happen, they now getting stomped by both. They were in denial, they thought, everyone loves Nintendo we'll always be on top. Hell IMHO i think they still think like this, judging by their actions.

I dont think Ninty has it in them to go toe to toe with anyone, they havent in a long time. Not with the current guard.

XB1 is outselling WiiU nearly 4 to one and you call it weak. Their is really only one week player here and we all know who that is. NX has to succeed or Nintendo are finished. They are the ones who need to prove themselves here.