IMO. The "Fusion". Essentially a console that is elective to the point of it being effortlessly transformed from portable to home and back. That's my guess as to what the fusion is going to be anyway. They seem very tied to portable devices, so a new console will have to incorporate that. 

Vita Tv.

You do realize that what you are asking is impossible right?

Anyways, I think all the consoles need what the Vita has gotten. A steady stream of Japan targeted games. I doubt that will happen for a while with the PS4 and it will likely never happen with the Wii U and XBO. The Wii U will get bumps from exclusives but not enough to change people's mind that Consoles are doomed in Japan. 

@Dusk: I've been a proponent for a "fusion"esque console for a while now. I feel like that is the only way Nintendo will be able to survive in the home console space and Sony will be able to survive in the handheld space. Whoever gets there first is going to be glad they did (and whoever gets there second will have a much more difficult time of things)

Yeah, uh ... if you want to talk about circumstantial arguments, I'm gonna have to say the theory that they don't buy home consoles because they want to "evade the humiliation" falls under that category.  I'm also pretty sure that smart-phone gaming wasn't all that big during the Gameboy era.

Japan has less televisions per person than the US or much of Europe and a high dependancy on public transportation.  Those are real circumstances.  Japan is not gaming less, as we know they spend an enormous amount of time and money on apps, they're just gaming differently.  You can say that this should have no impact on home console sales but I disagree.  Gaming is all about time.  If they're gaming on their phones and they're gaming on their 3DS, that leaves less time for consoles.  All of these things are factors.

Alright, just for you, you can change humiliation with "western games they dont like nor want to like".

Those circunstances of public transportation were there long before last generation. They had gameboys back then aswell. You mean to tell me they just started playing portable games more in the conveninent time when the Japanese development community stopped dominating the home console market? Mighty convenient, i'll say.

Reduce development time, companies like Square take years to make anything

If you don't think the rise of smart-phones have anything to do with it, fine, I'm not going to argue about it.

Nothing. Japanese spend so much on smartphone games, you can have growth and benefit in it, there is not incentive to develop on console. Western games have no impact here. People are busy with work, there is less and less young people to spend hours on a console game. I can't see anything that could revive console gaming in Japan.

Console game is as dead in Japan as pinball is in Europe. That's past.

Making a console portable

Making SUPA handhelds.