Well, as a few people said, Nintendo hasn't really lost the sales crown, and people are getting a little prematurely excited about early PS4 and XBOne sales. People are already talking about Nintendo's NEXT console and it's very early for that. That said, there is no question Nintendo dropped the ball with Wii U, and Sony is doing a great job with PS4. I think MS has done the worst job of all with XBOne, and I would be surprised if the next MS CEO wants out of consoles, but I digress.
The first thing I would say is that any issues with Wii U have nothing to do with the console's power. It's all about content and image so far, so Nintendo really needs to up its game in games and in branding. Actually, since we're talking about being the market leader and not just doing well, upping the game isn't good enough, they need to take drastic steps. So they should:
-Buy 3rd parties. I think 2 key ones would do the trick. Capcom and Square have a combined value of about 3.2 Billion US$, so I fork out about $1.7B and take a controlling interest in both. All games now become Wii U exclusive so titles like Deep Down, RE7, FFXV and KH3 are on tap for the next year or so for Wii U. This also makes competitive platforms seem way less appealing, and should really drive sales in Japan. Other titles like a new Mega Man, Street Fighter, Tomb Raider and Dragon Quest will be on their way to really drive later gen sales. FF7 remake would be initiated right away. Both companies - especially Square - would be streamlined and focus on what they do well. MMO's and mobile would be dropped with the exception of a new FFOnline made for the next home console. Hironobu Sakaguchi would be offered good money and prestige to come in and restore glory to his artwork and lead a FF team.
-Starting with e3 2014 the total image of Wii U would be re-branded. With MK8 and Smash having recently launched, there would not be a single mention of Mario at the conference. Zelda would take center stage as a mature title even if it isn't ready until 2015. But the conference would focus on it and the coming fall line up of very serious games such as X, FF15, Deep Down and RE7. There would also be specific mention of COD:2014 and some other 3rd party games.
-In keeping with the above, I would really push COD and Wii U's free online. Even if it cost some significant money, I would ensure that every casual gamer new that COD was on Wii U, and I would have a Christmas bundle with the game heavily promoted.
-Wii U would get a re-design. The console would look more distinct from Wii with some nice touches like some LED lighting. The Gamepad would get a new version that is a little smaller and curvier in an ergonomic way. The screen would lose about an inch in diagonal size.
-The Wii U name and logo would be changed a little. It would be something like Wii U HD, with the U kinda tiny. I wouldn't drop the name, but a casual customer could just call it a Wii HD if that roles off their tongue better.
-Major new marketing campaign which doesn't focus on kids or families... or anyone really. It just promotes Wii U as a really cool product with lots of cool features. Maybe something funky or obnoxious like the old Crash Bandicoot ads. I show sexy women having fun with the camera and touchscreen, I show guys enjoying COD, and I really push the games. And I promote the low cost and I really explicitly push the free online. I spell it right out to customers that they can save about $400 and still play COD online just like on other systems.
-Essentially I go for the jugular, target the core gamer that loves rpg's and adventure games. I hit up those that like real games and offer them more games on a system that is cheaper and has free online access. I make the system seem cool to adults. If they come to Wii U, others will follow, and the family friendly content is already there. If I can convince adult males that Wii U is the system to have, kids will think it's cool and want to too. And if I secure those groups I make a push for the ladies and really advertise neat iPad like experiences. Achievement Unlocked: Market Domination. Oh yeah, I also have achievements in place by the fall.
