I dont think Nintendo should focus on winning, they should focus on making profits and ensuring the install base is large enough for their ip to sell well on. Nintendo hasnt had the mainstream core gamer in about 20 years so It will be Incredibly difficult for 3rd parties to support them and even If they do their games arent likely to sell well. They also cant rely on casuals In the home or handheld markets anymore making Nintendo devices somewhat of a niche product.
Nintendo needs to make affordable hardware sold at a profit with a steady stream of high quality exclusive games. 3DS was priced too high at launch and after the price cut was sold at a loss for about a year while Wii U was the highest priced Nintendo console ever and still sold at a loss for over a year, Nintendo cant make foolish mistakes like that again next gen. $199 should be the aim for launch price and sold at a profit.
Nintendo is also known for having droughts in between big releases due to lack of third party support, especially now with HD development taking much longer. They need to become more self sufficient and they can do this by unifying the handhand and home consoles.
The next handheld and home console should have the same or very similar hardware that play all the same games. In theory this will cause R&D costs to be down and they can make more new ip and revive old ip more easily since they wont have to make 2 seperate entries of each franchise anymore. Also this will give Nintendo's home console all the Japenese third party support that their handhelds are use to getting.
The hardware will be slighty more powerful than Wii U, similar to the jump from GC to Wii since most Nintendo games have no need to look any better than that and its a sizeable jump from the handheld point of view. Each sold for $199 at a profit. In this scenario even if the home version sells 15m and the portable version 35m thats still a total of 50m which is fine since they are both sold at a profit and thats more than enough to for Nintendo ip to be multimillion sellers.
When the herd loses its way, the shepard must kill the bull that leads them astray.
