The biggest issue, of course, is that Latin and South America, Asia (particularly India and China) and the Middle East, are all potentially huge markets, each dwarfing Europe and possibly the USA.
Any of the big 3 console manufacturers should be looking to invest in those markets, and develop games and systems that appeal to them.
Nintendo especially, with their philosophy of reusing older technologies in new ways, should be looking to leverage Wii technology, perhaps upscaled to HD in those emerging markets; creating new studios in those countries, making the games that those consumers would want to buy.
China is the obvious, but India also has a rapidly growing middle class, and as a country India is also much more open to capitalism than China is [citation needed].
Plus those games could be sold elsewhere. I don't know about anybody else, but I would certainly be interested in playing games created by the Indian culture, or the Brazilian, or the Chinese, or even the Middle East (provided it was kept secular, Abrahamic Religions are terrifying)
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