To not compete with sony and microsoft consoles directly.
They should just put all of their games on one platform...make it an handled capable to output 720p graphics on a TV. This would solve a lot of their problems...for instance: no more droughts, they wouldn't need to replicate all their 2D, 3D Marios, Mario Kart, Smash, Dnkey tec. on 2 different consoles anymore freeing resources for different games.
Graphically it doesn't need to be better than a WiiU, Nintendo is not about realism, for their needs the WiiU is already powerfull enough.
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