1 & 2

That is just the gaming press hating Nintendo. They would do this no matter what. Ask naznatips.

In the very short term they could (and should, both for sales and customers sake) release both a players choice catalogue of past major sellers, and a quality based line of games like they've done in Japan. Cheaper games based on the Wii's recommendation channel.

The former could include
Mario Galaxy
Twilight Princess
Mario and Sonic at the Olympic Games
Endless Ocean
Rabbid's titles
Lego Titles
Sonic and the Secret Rings
Umbrella Chronicles
Mario Strikers
Super Paper Mario
Excite Truck (oh hell, go ahead and make it Excite Bots. Who cares if no one bought it!)
Punchout and some others.

They also need bundles. Their Sports Resort bundle is a great idea. But some "hardcore" game bundles would be awesome. A redsteel 2 Motion plus bundle would have been a great idea.

They should bundle WSR with the Wii, well I guess they already did.

Maybe just cut the prices on their games.

they don't need to to anything.

I think what Nintendo really has to do is improve its software line-up. Make a huge first party push like the competition to draw in new gamers. Titles like WiiParty/LOZ will certainly help push Nintendo's hardware this fall but I think Nintendo needs to really push with all its might. Give gamers new titles in several key IP's like StarFox, Kirby , Donkey Kong....etc....etc...

But in the end this situation is still pretty good. I mean Nintendo expects to ship nearly 20-million units during the next fiscal year. If Nintendo sells another 18-million hardware units what exactly does Nintendo have to fear the Wii will almost be at 100-million. Once the 2011 fiscal year is over Nintendo should have about 110-million Wii's in peoples living rooms. That is pretty dang good if you ask me.

After 2011 Nintendo will have a new platform to begin making profits. But don't forget with a new platform the Wii will have a price cut as suggested in the poll. As well I bet once new hardware launches Nintendo will launch a players choice line-up or cut the prices of its software turning a wicked profit.

Keep in mind Nintendo still profited over a billion dollars with only a games and hardware division while Sony and Microsoft's game divisions didn't make nearly that much. I think Nintendo while loosing profits is still in the drivers seat and will be for the rest of this generation and with the 3DS and the next home console around the corner I can't see Nintendo loosing any profit in 2010 fiscal year or the 2011 fiscal year.

Nintendo's answer to this question is the 3DS and LOZ/WiiParty...etc... I expect a big E3 this year!

Player´s Choice would be nice as well as 3rd party exclusives.

As some have said I think they have already taken some steps, bundles with WSR, the black Wii is now out or has a release in all territories and they have strong software through the middle of the year. I think it's just going to take some time to see the fruits of their labour.

Next is a good E3, with a good second half line-up including both core and casual, plus an announcement of players choice or something similar and I think they will still do very well for the rest of the year. The only thing I see lacking for the Wii this year is a NSMBWii-like game and hopefully this will be addressed at E3.

Last year it needed a price cut and 3 10+ million sellers to sell well...this year it probably has more million sellers (SMG2, MoM, Zelda, Wii Party, Wii Vitality) but not as big. I think it still needs 2-3 huge 3rd party games, at least in one territory (like Monster Hunter was in Japan), to sell like last year without bundles or new SKUs. Some sort of upgrade would help a lot, but I'm not sure what people wants that Wii doesn't have...speaking of software they simply need to fight better piracy, the last firmware did nothing at all.