A few months ago, I came to the conclusion that Nintendo should stop making the "console" part of the system.
Nintendo makes great controllers and great games, but to keep the sticker price low, they have to compromise on the CPU, GPU, RAM, and HD.
I think it'd be in Nintendo's best interest to just drop the box. Most consumers already buy $600+ boxes with superior CPU, GPU, RAM, and storage, called phones. Nintendo should just create a ~$100 package that comes with a high quality controller*, a way to get your phone to display graphics on your TV, and a code to download your first game free (replacing the pack-in game.)
*When I say controller, I mean whatever input it is Nintendo wants to play around with this time, whether it's the joystick and trigger button from the N64, the motion tracking from the Wii, or the second screen from the Wii U. Nintendo has never gone a generation without massively changing the controller... they shouldn't suddenly be like Microsoft or Sony and make nothing but controllers with dual joysticks, shoulder triggers, and a couple of buttons on the face. The Microsoft controller has hardly changed ever, other than slimming it down, and Sony hasn't changed anything since the PS2.