You're saying the answer would be releasing side by side when most gamers have a preference in console (and spoiler alert it isn't Nintendo)? Releasing side by side would only mean Nintendo would have a low install base again, and skipped for most third party support. Even if the console was more powerful and released side by side, I think the Gamecube shows that being more powerful alone isn't going to cut it. Releasing when most people are looking for their second in home console, and providing a superior option I think would go over much better. Then, when the install base is a little higher start to work in fixing the relationship with 3rd party devs. This would mutually benefit both parties, as the 3rd party devs could appeal to a higher install base (and work with tech that is superior than what is currently available allowing for more creative freedom assuming there are still devs who still care about the creativity), while Nintendo gets the benefit of saying they're getting a lot of third party support. The winner is literally everyone.

You say release side by side, but then explain how you expect for the majority of audience to hop on board? That just doesn't seem practical to me. 

Give people a more convincing reason to upgrade rather than "hey look, we're nintendo and we got a new system, its not much more powerful than your current system and costs a lot more and we are not expecting half the multi-platforms, but please have pity on us and buy it anyway".... which is pretty much what they do all the time.

HYPE.
HYPE.

and 10+ titles shown for first year.
4+ luacnh day.
ADVERTISE.

have one of : Metroid, bayonetta 3, Kid Icarus , starfox as a Luanch
have one of : pokemon, new Zelda for lauch. (or both, lol.)
and a remake to fill a gap.


and have Mario kart WITHIN a year.

You mean it's what they did once.

The First Thing Nintendo should do - Choose a Good Name for their console.

First I think "beating", or achieving Wii like sales should be put on the backburner.  They need to just be a solid competitor aiming for 45~60 million sales (which would be 3 to 4 times higher than Wii U anyway, and solid by Nintendo norm) rather than come up with some wacky gimmick and hope it does 100mil.

I guess the truth is that i don't see any real way that nintendo could make it happen in the home console space. They releasd a year before the PS4/XBO and still managed to sell only around 5ml consoles. As it stands it seems like the nintendo faithful is less than 10ml strong right now and maybe even less. That means they have practically almost entirely lost their core gamer base. I really don't see how coming out 2/3 years before the PS5/XB2 will make a diffeence. People will just wait. 

Anotrher thing to consider is that the next generation of consoles would be pushing GPU power of around 6-10TF (assuming the usual generaltional jump in power happens again). If nintendo launches a new console in 3 years with their usual pricing strategy then that console wouldn't be considerably more powerful than the PS4/XB1. It will also be at a time when the PS4/XB1 will have a combined install base of over 80ml consoles. Why would 3rd parties want to support the new nintendo console. What good will that power make if there are only nintendo games to show for it. By the time they come around to releasing zelda for that console sony and MS will be talking about their new consoles.

Maybe the industry just isn't big enough for 3 players in the same space. 

What if Nintendo made a new model of WiiU instead..

A model with more power also making it a steam console..

AND they could then combine the power of the chips (Steam-WiiU) for some insane VR games..

@OP - The Nintendo home console life cycle is normally 5-6 years. N64 in 1996, GameCube came out in 2001, Wii in 2006, Wii U in 2012.

Your thought of Nintendo ending the Wii U early, in 2017-2018 would actually be normal length for them.

Yep.  They really just need a complete reboot of their brand.