What can Nintendo do?

[ICStats]

For home console in the mid-term they probably have to just swallow the pill and keep doing what they're doing. 3rd parties have all but left Wii U, so it will be very hard to reach any critical mass on that product, but they have probably invested a lot into the games that are coming, and will be better to keep going and break even than to cancel anything.

For handheld they could move to the next generation in the next 1~2 years I think (i.e. when 3DS is 4 to 5 years old).

Iwata clearly does not want to downsize Nintendo, but I think they would start reducing resources in the home and handheld games segment, and add resources to their QOL segment.