Even if Nintendo really didn't feel like making their own console or wanted to take a hiatus for a while, as Nintendo president I'd never just grovel to both Sony and MS and just become a common third party like Sega (bleh).

That's like a Victoria Secret model just dating some random dude off the street because she broke up with her actor boyfriend. Nintendo can do much better than that.

I'd have a meeting with both Sony and MS and say we are only developing for one of you two for the rest of whatever remains for the following generation.

You will have to pay us a huge amount of cash each year for our exclusivity. You will have to let us publish our games royalty free. You will have to pay for our advertising. Oh yeah, you also have to release a special version of the XB1 or PS4 with the Wii U chipset integrated as well. This "all-in-one" will have the Nintendo and Sony/MS logo on it.

You will also have to support our future handheld and agree not to compete against us in the handheld/portable space. In exchange (aimed at Microsoft in particular) we may agree to work with you on a game enabled cell phone/tablet line, but only if the Nintendo logo is the primary brand.

So that means a Nintendo handheld with Gran Turismo/Uncharted/LBP or Halo/Forza/Fable/Killer Instinct (woo hoo) etc.

And we get all primary licensing fees from this portable platform.

Don't like the deal? OK, fine, we'll just go to the other company (Sony or MS) then. Oh we also have a meeting with Apple later on today (watch MS and Sony execs crap their pants and sign deal).

I would make a home console Pokemon game with a big world to explore and full of cities, with Ash Ketchum as the protagonist and it would have a good story (like the stories of some of the pokemon movies), obviously it would include the 6th gen pokemon. An online mode is a given, of course. The name of the game would be Pokemon Adventure (only for WiiU). Then I'd cut the price of the console.

And I'd hire Katy Perry to make commercials for the T.V

Then I'd moneyhat Square-Enix to get Kingdom Hearts III with additional content, after all that the console would be perfect for me selling a millions of units.

Katy Perry would be a good choice for TV commercials.

Honestly though f*ck Kingdom Hearts. "Nintendo Hearts" would sell 2x-3x as much as any Kingdom Hearts game if done properly. I'd give Square-Enix a chance to get in on Nintendo Hearts, but they'd have to pay a steep price for the privelege. Final Fantasy VI and VII Remakes. Nintendo platform exclusive. Take it or leave it deal.

Drop the price of the Wii U and buy out Atlus and a few other companies.

Take the money out of the bank, sell the assets, fire everyone - watch the Internet implode and die happily after, knowing i was responsible for the anguish of millions of people (and maybe cause a 2nd video game crash this way, creating even more suffering and anguish) ;o

So a year after, what would I do in this situation? I would incentivize local co-op modes, and although it's a bit late already, increase development to be able to support two systems equally by expanding current or buying established teams (no more droughts!).  Another possibility is to coast along this generation as it is and merge the handheld/home consoles into a hybrid next generation. The universal system would be primarily be designed as a handheld taking the first WiiU Gamepad concept design but making it smaller plus having an optional 3D screen add-on clamshell to make it 3DS compatible; when at home the handheld becomes a Gamepad and the home console handles all the processing power.

Software is compatible with both systems, priority software development done on the handheld with extra graphics when playing at home, and titles that really require the extra hardware are made exclusively to play at home (third party next-gen games?). This way the handheld and home console OS, apps and digital software are unified, with a base of retail handheld games compatible with both. It's basicly what Nintendo are going towards. They've unified their hardware development teams and want to make a universal developments between their systems.

Marketing and how to sell this new console? Have a standalone GameDS unit sold cheap similar to a handheld and the bundled package call it GameWii similar to the WiiU which includes the home plus handheld console and a wirelessly designed wiimote+nunchuk.

... Shit, this sounds just like the PS4+Vita, hahaha, scratch all that ;P

Buy Atlas and tell them to make a Pokemon for adults
Buy Square and tell them to remake FF7
Buy Mistwalker and tell them to make a real Final Fantasy 15
Buy Level 5 and tell them to make a real Dragon Quest 10
Tell Takahashi he can use the Xenogears franchise title now
Tell EAD console teams to make Mario Galaxy 3 and a Legend of Zelda equivalent to Mario Galaxy

I grab as much money as I can. Then I just don't go to work anymore. Sure, they'll fire me, but I'm gonna be a friggin' millionaire, what do I care? I heard Kaz earnt 1.6 Million last year... That would be enough...

Nothing, their is nothing they can do to improve third party support and to expand their audience past casuals and ninty fans.

You sound like the CEO of SEGA.