Nintendo where do they go from here??

[Nem]

Wall of text crited me bad.

To know where Nintendo goes from here, one would have to be able to see the details on their financial report. We dont know for sure what it was that cause the losses (probably inventory) nor we know the breakdowns of their titles in profitability.

I would say that the knee jerk reactions of "going third party!" are very ill informed. What are poor translations are probably skewing meanings from Iwata's words that arent there.

The only thing that will realisticly change is: Nintendo may put their classics on phones. Nintendo will make more relistic predictions of hardware sales (aka not order more than necessary and waste money in inventory).

Adding to this, if i were them, i would consider going "shopping" for more developers to increase the value of their systems and up the sales. Theres only one way to make a sucessful Nintendo console at this point. Its to give it great value in terms of software. If they have great and plenty of exclusives popping out, you bet more people will get it.
If i had to give advice to Nintendo, i would say they should look into buying a big western developer so their standing in the west improves. Maybe Ubi soft would be a good candidate. I predict Ubi is gonna be in trouble soon (i think the crew and Watch dogs are gonna flop), so a buyout would be good. It would bring all of the assassins creed fans aswell and get Nintendo more in touch with the western market needs.
Getting SEGA and/or platinum wouldnt hurt.

Basically... the way forward to Nintendo is to either brace themselves for decline in revenues until next "round", or go all out taking risks to win big.