I think they need to make a much cheaper console, and don't compete in specs. Make their next console the most powerful thing they can sell from the get go at USD200.
Sony and Microsoft can take losses, and will make their consoles multimedia machines, and Nintendo can't compete in that.
The handheld should be able to remote play the console, and the console should be able to play handheld games if the owner has both the console and the handheld.
So, the handheld would be able to remote play console games, and also work as a Super Game Boy for the console.
They should produce more games, and don't miss chances like buying Atlus, invest in studios.
Nintendo has to become a paralel market of videogames, let Sony and Microsoft compete in making the people who play GTA and COD choose one console or the other.
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