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In hindsight, I think Nintendo should've just gone in an entirely different direction with Wii U.

Go for a more off-the-shelf but still affordable 800 GFLOP GPU from AMD, shrink it and make it as power efficient as possible. 4GB of cheap DDR3 RAM, quad-core CPU. Make sure the GPU allows for easy PC ports.

Do not design the console for Japanese tastes. The console industry is done there. System should be about the size of an American NES. Bump the power consumption to 50-60 watts, not a big deal.

Do not make the Wii U tablet the main controller. It simply doesn't add enough to most games to justify adding $100 to the cost of the console. Revise the Wiimote + include a Pro Controller. Keep the tablet pad idea, just bundle it with Nintendo Land, like the Balance Board + Wii Fit, but push third parties to support the off-TV play feature.

I think that type of system coupled with a smarter 1st year, would have far better third party support and could be sold for $299.99 easily today, which would give it a significant price advantage for those wanting to upgrade from the PS3/360.

The Wii U IMO was designed more by Nintendo as a last ditch effort to save console gaming in Japan by trying to mimic the use of a handheld (3DS/Vita) around the Japanese home, but it simply wasn't worth it going that route.