MS should leave the HW market and focus on software for PC. They should bring an app to windows which effectively gives PC's the same infrastructure as xbox. As an optional with a subscription fee, less people on this service are likely to cheat because they risk getting perma banned but they wouldnt since they paid for the membership.
At the very least, they should aim to take over from steam as the leading digital distributor.
Sony should leave the dedicated handheld market - Should continue with handheld but only in the form of streaming to mobile phones with dualshock support.
Nintendo should leave home consoles, remain in handheld but also sell games on android/ios/windows phone and the playstation store. The hardware would sell because not all phones would be capable of playing all the games, and it would be cheaper than buying a mid-high end phone.
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