Nintendo - Increase production to 2.4 million/month. Get KOEI back on Nintendo (not DW series, think PTO or RoTK). Create a Ninjabread Man Seal of Shovelware to use to scorn companies into not polluting the aisles. Fix the online mess.

Microsoft - Price cuts in Europe/Others. Price cuts in Japan. Aggressively defend any exclusive relationships. Upgrade the XboxLive servers. Two weeks after GTA debuts, drop the price of GTA by $10. Repeat with every other multiplat.

Sony - I agree with NJ5, fire the entire PR department. Use 2 SKU's: 120 GB native BC for $499, 60GB no BC for $399. Start calling in favors with developers for exclusives. If all that fails, duck and cover.

Nintendo: Increase production of Wiis. Not by too much more, you're almost at demand levels now. Just make sure you aren't super sold out during the Holiday Season.

Microsoft: Price cuts are needed in Europe. In Japan, just keep it alive until your next system (do NOT call it X-Box in Japan!) arrives. In fact, learn how to market products outside of North America.

Sony: Well, the PS3's finally cheap enough. Work on lowering those costs some more so you can match the X360's price in North America. Oh yeah, nuke your PR department.

Nintendo: buy square enix (they have that much money don't they) and then get proper FFs on the Wii, that would make me buy it, and increase production of the Wii and begin development of the DS 2, before every one in Japan has 1.

Microsoft: drop 360 price by $75. Advertise the hell out of GTA DLC, and announce GeoW 2, not Halo 4, sort out their problems in Europe (japan will have to wait until next generation)

Sony: make sure that KZ 2 comes out this year, make sure that FF XIII and MGS 4 stay exclusive, get ND to hire more people so they can release games on a more regular basis, get GTA V to PS3. Hype R2, improve PSN, release new colors, and let the Getaway and Eight Days out for the public to see. Introduce new colours, the DS 3 outside Japan and drop the price before MGS 4, and bundle Uncharted, it deserves to be played

Nintendo: ramp up production to about 4 million/month, and make deals with Activision-Blizzard on World of Warcraft cross platform for the Wii and Starcraft for the DS. Then make a big launch in China, and a refreshment en South Korea. Increase supplies in smaller European markets.
Build a new generation Gameboy, together with Microsoft, in order to kill the PSP. Call it Xboy, with both great FPS games and typical Nintendo games. Give it about the power of a Wii and launch very carefully at a price of $250-300. If it's a succes, increase production. Make Haloid, wich is used to make Miyamoto prove the 'I could make Halo' statement. Give the Xboy the most solid online service a handheld has ever had, using wi-fi.
Make a Player's Choice line for the DS, with all older titles in it. Reduce DS Lite price by about $30 worldwide, and make sure a new model for the DS is ready as soon as even this price drop stops boosting sales.
Make sure third-parties make quality games for the Wii, if they won't listen, buy a major third-party publisher and say this fate awaits everyone who fucks with the Wii's greatness.
For next generation, be sure to launch first, to be on par with PS3 technology wise, and introduce some new things such as head-tracking, and make the Wii online at least as good as XBL is nowadays. But make sure it's free.
Slowly start trying to end the console war.

Microsoft: try maintaining the 2st place, lower the XBL costs to about $2 per month. Start working on the Xboy, together with Nintendo, and make that damn Miyamoto prove his 'I could make Halo quote', with Haloid. Make sure PSP is dead after this lethal Nintendo-Microsoft assault. Use Microsofts point of expertise, online functionality.
For next generation, be sure to launch first, and try not be become too expensive, and focus on casual gaming. Let the Xbox 720 be developed in Japan, as Japan seems to only buy Japanese consoles and the rest of the wordl doesn't care where it's made. Xbox 720 has to be the machine that the entire family uses for all-day purposes, like watching tv, checking e-mail, viewing photos, etc. Do this with free online and many arcade games and easy online communities.
Make sure Nintendo DOES NOT become a big enemy next generation, or prepare to be BURNED.

Sony: first, before trying to regain market leader position any further, make sure PS3 is profitable. Defeat Xbox 360 and become second in the console war. Make sure you have enough big, good exclusive games and try to make PSN about as good as XBL, but keep it free.
For the PSP, try reducing the price even further, to beneath DS levels, and make sure it becomes casually oriented, with many games that can be played for either a long or short time. Try to do something about the abysmal software numbers in some regions.
For next generation, try to get Ken Kutaragi to make one last killer console, building a new name if it has to. It has to be PS1 all over again- third-parties will have to be seduced into making new exclusives, gamers and non-gamers have to be attracted by excellent marketing, and be sure to launch at least one year before your competitors, with a killer app and a affordable price.

Nintendo - at the moment not much. You are doing the right thing. producction levels about right; people believe that they have to buy one when they see one. Good games and concept.

MS - copy everything (blu-ray, fun casual games, free online) the others have (that's what ms is good at. none of their original ideas have ever succeded) and use all your money from the windows/offfice monopoly to do that, unless the authorities prevent it. Try to get some good engineers that actually can design a functional console.

Sony - make home working and expand it beyond games into your other businesses, movies, music. Make the development environment better and moore productive, support developers, make development cheaper

@ mariozelametroid, I take it that the Xboy is a joke, because it is possibly the worst idea ever. FPS games aren't particularly good on the move in general, and multiplayer is not particularly important, as for most of the time, gamers are not in wifi hot spots

Nintendo: Increase production ASAP, pay more for the components if necessary.  Invest insane profits into developing more first-party games in all genres -- get the most talented developers out there.  Appoint a Guru of Third-Party Development whose sole job is to obtain as much third-party support as possible so that all the best games will be available on Wii.  Give him the resources he needs to make that happen.  Make sure third parties have all the tools they need to create online games for the Wii.

Microsoft: Make the 360 hardware as reliable as possible and reduce its noisiness as much as possible.  Replace all failed system components with newer, more reliable components, and scrap the old products.  Gather market research in Europe and go after that market hardcore.  Immediately cut the price of the 360 to $249/299/379, and plan for another price cut in time for holiday 2008.

Sony: Honestly at this point, I wouldn't change much.  Keep the price coming down, advertise the crap out of the big titles in 2008.  Get that TV tuner ready so your PS3 can be a DVR.  Keep the existing customer base happy and loyal, and stop publicly making an ass of yourself to everyone else (fire PR if necessary).

Any of them: Sell the company and buy an island somewhere?

not even close

i got 2 calls in the last 2 days from a DECEMBER craigslist posting for wii for $350...and brawl/kart/fit haven't even come out yet...CURRENT demand isn't even close to supply level right now and wii fit will add another 5-10mil+ people that currently aren't even looking at the wii...brawl/kart will bring in some more as well, but on a smaller scale

Nintendo: sit back and watch the cash flow in, maybe increase production

Microsoft: drop down the price a little

Sony: drop down the price a lot