I would ramp up VC to 2 new games a week.
Gamecube games would be on the VC.
VC subscription. 30 bucks a year for every game in the VC playable similar to PS +

Build five new western studios.
Get F-Zero, Starfox, and Metroid into production.
Cut all Mario games besides 3D, 2D, Kart, and Paper Mario.
Revamped 2D Mario with more effort, bigger budget.
Paper Mario only RPG from now on.
Get a unified account system.
Improve online drastically. At least on par with current psn.
Buy Atlus.
Buy Sega.
50 dollar price cut on console. Comes with 250 HD, 1 year of VC subscription, and NSMBU + Nintendoland packaged digitally.
New console colors. Dark Blue, Orange, Red.
Moneyhat a bit. Not excessively, but a bit.
5 new IPs in development by the end of the year.
3DS Redesign.
Take Aonuma off Zelda, and Sakamoto off of Metroid.
New advertising firm, and put more money into it.
Don't mess with smartphones or tablets.

After wasting however many billions that would take, then seeing most of the staff resign and form new studios, yes... yes it would fuck them.

At this point a lot of the damage is done because even you come up with "killer game idea" it's going to take 18-24 months for said idea to become a playable reality, so Iwata and company really dropped the ball in their planning of the Wii U back in 2011 or so.

That said, what can they do at this point?

- Aggressively try to cut costs as much as possible. Push the tablet idea through till Mario Kart 8's release. If the console is still missing sales targets, then I think you gotta consider cutting your loses and making a SKU available for as cheap as possible ($199.99?) without the game pad. Sorry but you can't piss away an entire console generation because you were married to an idea that just didn't cause any excitement with general consumers.

- I would double down on celebrity endorsements and stop marketing so heavily to kids. It's a turn off to adults. Hire Megan Fox or some other B-tier, but good looking celeb to be the face of a new marketing campaign.

- Go grab Reggie and NOA, tell them to go scour for the 10 most interesting looking indie projects they can find. Finance those 10 projects. Maybe you can find the next Minecraft or Angry Birds, worst case scenario is your console just got a bunch of interesting/fresh new games to play in between all the Mario releases. And funding indie games doesn't cost a ton of money.

- Redesign the system for 2014. Shrink the GPU to 28nm and give the console and game pad a sleeker new look. Use a higher quality screen display too. Expand the remote control functionality of the tablet.

- Swing for the fences with a third party collab. I'm talking Nintendo x Final Fantasy or Zelda x Dragon Quest or Pokemon x Metal Gear Solid (ok, err, maybe not that one). Whatever. And get into development as soon as humanly possible.

- Go grab a movie license. The James Bond game rights are available. Marvel/Disney would probably be open to letting Nintendo make Avengers/Marvel Universe games like the Star Wars deal in 1990s. Nintendo may simply not have the time to create a big new IP this console cycle anymore, Bond sells well on Nintendo platforms and a high quality Marvel game would sell well on both Wii U and 3DS platforms. Both bring in slightly new/different audiences too.

- Finance the revival of some defunct third party IP. Contra and Megaman and Ghouls N' Ghosts and Shenmue ahoy.

For real, what I would do is actually put more games on the VC (and not limit the handheld VC to 3 generations behind). I would release previous gen console games to the 3DS VC as well (past the NES, up until N64).

I would buy several more studios (in the west and in japan).
I would plan a price cut for the 3DS early to mid 2014.
Release more 3DS XL colors in the USA
Increase advertising and not completely market to children for NoA
Upgrade servers dramatically and overall increase the online experience to a new level

Besides that, I would keep everything else the same.

And they would own every major sports licence on the planet :)

Launch THE game/ games the hardware was designed for.

$50 Mini game collections wont cut it this time around with smartdevices/app market presence.

Seems as so. Although, those posts could be hidden trolling gems... who knows.

First bold: Typical Sony/Microsoft Fan response.  I doubt you think the Wii U even has a chance, and that Nintendo even has any chance in the console market except in handhelds since they are the only ones there.

Second bold: You can't be serious about that.  Of course the 3DS can run N64, the DS even got ENHANCED ports of N64 games.  The Wii can easily handle N64 games on VC, and the 3DS is more or less just as capable as the Wii was.  The only problem I see with 3DS having N64 VC games is that the N64 controller had the Z button, plus those six face buttons.  That leaves the 3DS with 3 buttons less than the N64.  However, since the 3DS has a second screen, there obviously can be a way around it.  Also, LoZ:OoT3D handles just fine, so it can easily be done.

Re-release Xenoblade. I pick HD remake to boost Wii U sales.
Make some more HD remakes of GC/Wii games
I think the 3DS could use a Metroid game, so let's start brainstorming.

Porting and emulating are two very different things.