If the Wii U fails, they will really need to rethink their home console strategy in order to maintain profitability. Right now, Nintendo seems to be operating on the idea that radical innovation will win the day, when in fact such innovation is a big risk. It can lead to huge rewards, like with the Wii, or huge losses, like the Wii U. It's not a very good strategy for winning over investors and guaranteeing your company will see study profits.
Innovation can be good, and they certainly should seek to try new things, but they need to be able to stay in the same technological ballpark as Microsoft and Sony, because that is where the third-party developers are. Nintendo needs more 3rd-parties on board, and have more of the same multi-plats that are showing up on their competitors' systems, so that if their innovations fail they still have these other games to fall back on. Their 1st-party studios need to be able to keep up with HD development, too, and they should try to expand a bit more in terms of game genres.
