What would Nintendo have to do to capture some of Sony and Microsoft's audience

[teigaga]

1. Release system with hardware which is actually relevant. Not necessarily the most powerful console but considerably impressive for the time. (Ala Gamecube),
2. Find Name that is isn't "Wii"... something that sounds new, cool but not alienating to their family aduience.
3. Arrive early in the next gen race (2017)
3. Work with at least 1 or 2 major 3rd parties to ensure early support (in form of a trusted IP/franchise, i.e not ZombieU) which would be a proof of concept that 3rd parties can succeed. This partially relates to the 1st point, because unless Nintendo's hardware can offer an clear advantage over the previous gen, no one would be interested if said game is multiplatform (assasins Creed 3 wii u)
4. A gamer friendly control. Gimmicks should not interfere with the ergonomics, feel and appearance of the control. Nintendo need to make a controller which is friendly to all types of games, not just mario.
5.They need to attempt to expand their portfolio with new franchises.

Nintendo may have achieved elements of this in previous console releases but they've never collectively done all of it, whereas both sony and microsoft have.