Saying "just make a hit new casual game that makes the controller a must have" is a nice thing to say, it's kind of like saying to an athlete "well all you have to do is go out there and break the world record, then you'll win the gold for sure".
Well yeah ... easier said than done. Chasing fads is akin to gambling ... you may win some, but Nintendo is now also tasting the flip side of that ... sometimes you will lose, and lose big.
Nintendo has a lot of kid friendly IP ... its time to get kids actually playing these games -- not just Mario/Pokemon ... something like Kid Icarus should be a huge hit with all kids, but it isn't. Instead it's a bunch of 30-year-old Nintendo fanatics buying that, which is a problem, because that's a dwindling audience.
But if a kid has a Kid Icarus toy for $9 and starts to get into the character through a game or TV show ... now you're in business.
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