Anyone advocating for persisting the current gimmicky/underpowered model are terribly delusional and will only keep Nintendo's path of irrelevance. Wii's unability to compete hardware-wise against PS3/360 were among the reasons for why it's sales declined in the long-term and the console died earlier. Wii U's persistance on that model digged the hole even further and the results are right there. Sure, Wii's gimmicky approach was a great idea, but was short-term, especially because how Nintendo managed it, with casuals in mind, and because the hardware couldn't provide the power necessary for third-parties's efforts. People are believing Microsoft and Sony are unstoppable/invincible juggernauts and can't be stopped, they aren't. Nintendo not only can as they should compete head on against them. By the way, the PS3/360 money bleeding argument from both Sony and Microsoft in the last generation are no longer up to date, especially because
Sony already said they're making profits with the PS4.
What Nintendo should do to compete:
- Drop their casual and family appeal built with the Wii and restore their core approach from NES/SNES/N64 days;
- Re-invest into modern hardware and technology;
- Build a modern online architecture and network;
- Rebuild their western development division and restore Nintendo of America's and Nintendo of Europe's authonomy of decision;
- Fully embrace third-party support from all around the world;
- Publish or buy exclusive third-party Teen or Mature games. (a known SNES/N64 strategy);
- Drop many of their unfriendly royalties, licence fees and manufacturing control policies existing since the NES days;
- Support versions of big multiplatform titles, exclusive titles and estimulate their audience to buy non-Nintendo titles (major problem here);
- Stop milking and become dependable of selected franchises and genres; (Mario, I'm looking at you)
- Counter the "kiddy" and "uncool" image on their marketing.
- Better management of development schedules (delays and droughts...) and expansion of their internal studios;
- Set Nintendo's major IP's as console primary and release them first on it and later on portables;
- Expand their major sources of income with new big, ambitious projects;
- Yes, a gimmick with Wiimote-like level ambition/success can be nice, as long the console doesn't become restricted to it's usage and doesn't limitate it's appeal and audience;
- Restore Nintendo Space World. Many memorable Nintendo moments happened there;
- More active presence on big gaming fairs, like E3. Participate into the Press Conference like they did.