Nintendo doesn't need to do anything. They do things their way and it works, ie they are profitable.
Will their market share approach that of the ps4? No.
However they can easily maintain a significant base with their unique, high quality first party titles. Focusing on 3rd party would be a gigantic mistake. The system doesn't need more horsepower, but would benefit from ditching the gamepad- yes it's possible, and most likely plans to do so are already well underway. More than anything, the gamepad is dragging wii u sales down. At 199 or 149 the sales would skyrocket.







