Nintendo, structured as it is now, would have to hit another bases-loaded home-run in terms of innovative hardware or stumble on a gimmick that goes viral. They cannot go head-to-head with Sony or Microsoft when it comes to the sheer number and diversity of experiences those platforms offer. As long as Nintendo markets to a niche audience, that won't change.
The people who run Nintendo now, the aging game developers who only care about making the kind of games they want to play, simply won't cut it if the company seriously wants to compete.
Of course, they don't necessarily have to go head-to-head against Sony and Microsoft, they just need to avoid another Wii U. The problem with going for hardware home-runs is that home-run hitters are more likely to strike-out entirely. I think Nintendo could do quite nicely with a simple, inexpensive machine that brings in a modest profit from day one. The Wii U is a weak machine with a price tag that's hard for people to justify, especially when they've been completely unable to sell the general public on the idea that the GamePad is a game-changer. Expensive gimmicks that fail to catch on are the retail equivalent of trying to swim with chains fastened to your ankles.
The only other option Nintendo really has is to invest a LOT of money, time, and energy into a comprehensive plan that will bring them to even footing with Sony and Microsoft. That means hiring industry leaders from all over the world and realizing that it's now a global market. I don't think the current regime is capable of that, to be honest.
