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This generation is lost in that regard, but next gen they would need to shed their casual/family friendly image entirely, compete with Sony and MS in terms of specs, invest in multiple new IP that aren't platformers and don't use the art style they usually do. Heavily invest in online, keep it free. Get third parties on board.

But then that would be boring as it'd become the HD triplets, and it isn't what Nintendo is about, not to mention 3 consoles vying for the same audience?

But it's all or nothing if they want to win over the gamer/core gamer/frat boy ect ect