Making a new console in the middle of a generation is possibly the worst thing they can do. Their issue is third party support. Third party developers don't want to develop titles for the system because of two reasons; the system isn't powerful enough to run the games without significant downgrades, and the gamepad makes porting games a nightmare.
Even if they make the new console more powerful than the X1 and PS4 at the same price point, with no stupid controller gimmick, with a reasonable name, an online service that is competitive to XBL and PSN, and a blu-ray player, they won't be able to entice third party developers. In order for developers to spend the time to port a game over to a console, there needs to be a significant install base to sell the game on. Nintendo will effectively be starting over again with the install base, so they'll be relying upon exclusives and first-party titles just like they are now for a good year to shore up a significant install base before developers consider the console a safe investment. By that point, we're talking about competition that will be 50 million or more units sold for the X1 and PS4 each. I highly doubt companies like Take Two are going to bother.
They really screwed themselves with the Wii U. Their best option if they want to keep the Wii U is to slash the price of the console massively to build up an install base and hope to make it back on software sales. They pretty much need to survive this gen. When the other two move to the next gen Nintendo can try again. Trying mid-gen is a terrible idea and it will take resources away from game development.
Their best option is to stop making consoles altogether and just make handhelds and games because it's what people actually want.
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