It's going to be a long while before the next wii comes out. Why is everyone talking about this all of a sudden?

Wii HD but keep the Wii 1 on the market after its launch, kinda like a new SKU

I think they should make a wii wheel out of melted down coins and give them out as a ltd edition special offer.

other than that offering to pay for advertising on some titles would be a good start - oh and take back the wii and ds development kits from Ubisoft.

You do know that Nintendo made more profit than Microsoft or Sony(I think) last generation. They didn't make a powerful console because they didn't want to.

From his ass. Here what Reggie said before the Revolution ( 2005 ) talking about it:

Revolution
I want to move on today by talking about our upcoming home console, codenamed Nintendo Revolution, in ways that also make it clear how it serves as a potential case study for blue ocean strategy or the Innovator's Dilemma.

Clayton Christensen points out that so-called sustaining, or existing market technologies, are inherently geared to deliver incremental increases in performance to customers who value what's already being delivered. A better description of the linear advances represented by both the new Sony and Microsoft consoles could not be written.

Christensen also observes that this kind of strategy frequently result in, "overshooting the market, giving customers more than they need -- or are willing to pay for."

Will the new competing consoles also match this description? Well, I'm sure everyone is anxious to find out.

Nintendo Revolution is decidedly not running in this race. Not because we can't afford the entry fee. But because we don't want the prize. There is no guarantee that even the winner among these two will be rewarded with profits. It's clear that the billions invested can only be rationalized by considering a larger corporate goal. It takes a long time to escape the red ink when billions are spent before the first machine is sold, and more money is lost every time the cash register rings.

We intend for Revolution, just like every other Nintendo system, to actually make money.

http://wii.ign.com/articles/670/670503p4.html

I don't know. Maybe they should buy few satellites with Mario logo on them for their own glory ?

Maybe they should build some more Wii factories!

I think how they should use the money is not a valid question. It displays the same misunderstanding of a market economy as the idea that Microsoft with all of its cash should outspend its competitors.

In an theoretical world Nintendo wouldn't have the cash but its shareholders. They could either decide if Nintendo could use this cash and create a decent return on investment by investing it or if they could get more profit by investing it elsewhere. Likewise if Nintendo had an expansion plan that promised lots of money which they didn't have they would go to a bank or their shareholders to get the money for this.

But of course we are in a practical world so money a company has is far easier to keep than to get new one.

I'd expect putting it into more development for games. Buying studios and making more in house ones. This way, they can make more money off of software, but it will also establish them better in the future by having more software to their name.

Make a massive cheese Mario as big as Mount Everest