Like has been said, I think Nintendo is always going to be the "odd man out." I don't think they should bother trying to be more "western" since western companies are always going to have home-turf advantage when Nintendo goes head-to-head with them. Nintendo needs to carve out a new market for themselves just like they did with the NES, DS and Wii.
Maybe this means releasing something like the Fusion. That said, I honestly think that Nintendo needs to go back to what made them such a success in the NES days. In the 80's kids were growing up in front of televisions and up until that point all they could do with the TV was watch it. Nintendo took that existing technology and made it way more enjoyable by bringing games to the television.
Today, kids are growing up in front of Smart Phones and Tablets. If Nintendo can bring console gaming to the smartphone using the same idea as the Wii U gamepad's Off-TV play, I think there could be an untapped market here. Imagine buying an Iphone protector/case from Nintendo that comes with buttons and an analog stick and then being able to play a game with console graphics while at home or possibly on the train via wi-fi on your phone?
Maybe this is a crazy idea, but Nintendo has to branch out from the dedicated handheld/Television markets. Not only are these markets shrinking but Sony and Microsoft are just too good with the technology and the big budget studios to compete with directly. Nintendo has to innovate.
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