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Nintendo did great this Gen and I don't really think they need to do anything. Yes, Wii sales are falling but I don't see PS3 or 360 ever catching up despite possibly being on the market longer. Wii should still be #1 by Gens end.

Nintendo should start preparing for their next System for release in Summer/Late 2012. They can keep Wii strong by releasing some games along the way but nothing "New" until their next System. They could also release something "New" for the Wii and try to get more sales and wait for their next System until Sony or Microsoft makes a move. Either way should work though option 1 is more possible.