What the hell are you talking about? Nintendo's Online Network is far stabler than PSN.

I didn't mention stablity.

The Online Network is the only thing that Nintendo can realistically change. Furthermore, PSN undergoes a lot more stress than Nintendo's.

Mario Kart exists.

What about PSN makes it better than Nintendo's Network?

Especially with its realiability after the fact taht you're paying for it and it hasnt changed much from its PS3 incarnation.

Download times have increased signficantly, Playstation membership is unfied across all playstation platforms, digital downloads, music, and movies are all easily availiable. Network is stable on all but the most heavy traffic days, which it warns you if unstable. Accounts predicate consoles. Especially, the Playstation App on Android and IOS. 

PSN is free, Multiplayer is what you pay for. Its drastically improved from the PS3 version and improvments to PSN extends to all platforms.

Mario Kart is built on the premise of multiplayer and easily scalable but every Nintendo game with multiplayer should have online multiplayer. Brawl had a terrible online experience, which shouldn't be as taxing as COD or Uncharted online.

PSN is basically at the Caliber of XBl at this point.

In fact, MK8 would be best handled as an online community racer rather than an extension of the living room dynamic

You mean like Wii Sports Club? Awash with Track Editors and Mario kart TV?

Nintendo's content should be the best obviously, but essentially make it as much of an MMO as it can while still being true to Mario Kart. I.e it need not be dependent on internet, but have a large online nonetheless. Like that I would expect MK8 to be a super killer app.

Well MK8 seems to be doing something to that effect http://www.amazon.co.jp/gp/bestsellers/videogames/ref=pd_dp_ts_vg_1#1

I'm sorry mate, but that's just a poor attitude to take. They "lost" what? The #1 sales spot in the generation? Who cares?

It was neat to see them back on top with Wii, I'll admit. But all that has ever mattered is the games we get to play.

And Wii U is going to give us plenty of those this gen, so that's all I care about. There is no "hole" they can't dig out of, the big guns like Mario Kart, Smash Bros. and Zelda will help things. But even if sales DON'T set the world on fire, we'll still get great games, and Nintendo will ultimately still wind up making a profit. Gamers need to start caring far less about sales numbers, and far more about just enjoying the good games we get.

And besides, if people are THAT worried about Nintendo's sales numbers...there's an easy solution: Go buy a Wii U. Go buy a lot of Wii U games.

1. The Wii U problem.

To fix the Wii U problem, there is only one solution and that is to buy a major 3rd party publisher. Nintendo's brands alone aren't enough to attract enough consumers and 3rd parties will only support the system if it sells a lot or if they are paid. Rather than paying them, buy one. I would suggest buying Square Enix. Nintendo is buying back about 8% of its own shares in anticipation of such a move. You take a controlling stake in SE for a few billion and Yasuhiro Fukushima gets a seat on the merged company's board. Games already in development are down-rezed and ported to Wii U such as FFXV, KH3, and the next Tomb Raider. The exclusivity of these cult-favorite titles should sell an extra 10 million or more Wii U's and help the system dominate in Japan where Sony will now have few key exclusives for that market and XBox is an afterthought. You also give Wii U a mild re-design with a smaller, more ergonomic gamepad and possibly fresh branding for fall 2014. With sales picking up, Japanese dominance, and a different demographic targeted, some other 3rd parties such as Capcom, Konami and some others will likely jump on board further pushing Wii U's to core gamers that were previously skipping it and this 3rd party support pushes more systems, making the system competitive with PS4 in sales and a solid profit for Nintendo. More importantly, it sells the brand to consumer new and old, readying the next system which will see a better launch.

2. The next system.

The next system is prepared now to launch in 2016. It will lose Wii branding, going with something new or something that triggers nostalgia such as Nintendo Entertainment System 2. It will feature a new controller that is much smaller than the gamepad but with a small touchscreen for menus and to make it look cool. This will be the only controller supported and can function in a Wiimote way if needed. The system will be 2-4 times as powerful as PS4 and have an excellent OS and Online infrastructure ready to go. It will price at $399 with an online subscription. It will link heavily with Nintendo's next handheld (which will have the same branding theme and target casual customers heavily). The following games will be started now to be ready for launch: EAD Tokyo's next 3D Mario (Super Mario Universe), Mistwalker-lead Final Fantasy XVI in classic style, an outsourced (to Shin'en?) F-Zero and two new IP's from Eidos Montreal and IO, with one being a 1st-person shooter and the other a 3rd person adventure. Other teams will move on to NES2 project as their Wii U projects wrap up over the next 2 years, giving solid support for Wii U but then making sure NES2 games are ready after the initial launch. The NSMB and Wii- teams are split into smaller groups that make or re-make classic styled downloadable content or party games which will be free to online subscribers, making the subscription seem worthwhile.

Upon further thought, Nintendo should start Money hatting. They have the money. If they want to be the Wii U to be successful in the west, they should pay 3rd parties and reduce licensing fees. By assuming more of the risk by investing their own money, they will be more likely to spend more on advertising there 3rd parties, and would make it easier for 3rd parties to profit thus getting them more games and helping out the Wii U. They already wasted a whole year, but as long as PS3 and 360 are still getting multiplats, Wii U can snag em.