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I think they definitely need to do something innovative but that doesn't necessarily have to be controller wise.
Wii won an audience over because it simplified controls so anyone could play. With WiiU I think Nintendo has lost that audience. MS with an enhanced Kinect is the most likely to profit.

Still the game scene has altered fundamentally. They are not so much competing with each other now, they are competing with iOS/Android. They are competing with F2P. 65% of all tablet use is playing games. 65%! That means every iPad or Android tablet is first and foremost a game console and tablet sales will easily outstrip console sales. Tablet games are cheap/free, console games are $60-70. Yes console games are 'deeper' with better controls but that's changing rapidly. Developers (even Epic) are working on AAA F2P tablet games and there's already devices which will let you play those games with a dual analog controller.

So it PS4/MS don't offer an experience tablet's simply can't match (aside from power, because power doesn't win and will be quickly outstripped anyway) with something like Kinect or holograms or games that will put you literally into the movie or sport event or such, then tablets have already won.

Games won't make much difference either. 3rd parties go where the money is and new developers have been making mad money on mobile/F2P for years. Console 3rd parties are now getting in the scene and an ever increasing slice of their profits are from mobile/F2P. Next gen CoD, Battlefront, Dead Space and Assassin's Creed will be on all systems - including tablets (at a fraction of the upfront cost). That just leaves exclusive and that alone will not win. Sony's masterful and plentiful exclusives never got them out of 3rd. Nintendo's couldn't save the GC. Tablets already have tens of thousands of 'exclusives', and more are coming daily.

Sony/MS need to innovate to survive and in a big way in this new environment. With WiiU I fear Nintendo has come up with too little, too late for it to have any long term success.