Where they are
Nintendo is in a very bad position currently. On January 17th, Nintendo President, Satoru Iwata, stated that Wii U and Nintendo 3DS sales did not reach the projected forecast. Nintendo had predicted to sell 9M Wii Us in 2013, but only sold 2.8M (ouch). Also the Nintendo 3DS was supposed to sell 18M, but only sold 13.5M. The Nintendo 3DS isn’t a huge problem for Nintendo right now since it was still the #1 selling system this holiday. Long story short, the Wii U is doing horribly and Nintendo needs to do something fast because they are losing money day by day.
How they got there
In my opinion, the Wii U is a great system. I’d totally prefer Wii U over the PS4 and Xbox One. The problem is, thats not what most people think. And heres the reason why. Nobody knows about it. This is because when Nintendo released the Wii, hardcore gamers didn’t like it and stopped following what Nintendo did and focused more on what Microsoft and Sony were up to. But, when Nintendo did release the Wii, it attracted lots of non-gamers. These non-gamers don’t really follow what is going on in the gaming world at all. So when Nintendo unveiled the Wii U at E3 2010, the only people who found out about it were the hardcore Nintendo fans. So basically Nintendo had built an audience with the Wii that they couldn’t sustain in the next generation. That is why the Wii U sales are poor. Hardcore gamers moved to Sony and Microsoft, and Wii users moved to smartphones and tablets.
What they need to do
If Nintendo doesn’t act, they will most likely go bankrupt by 2015. To prevent this, first they need to stop the Wii U production. Then they need to work on a new system with improved hardware. In my opinion, hardware doesn’t matter as long as the experience of playing games is rich, but the majority of people will disagree with me on that matter. Also, Nintendo’s new system needs to come with a stranded controller. Doing this should improve sales, but there is no guarantee.
It’s a shame to see the inventor of gaming in America to be in this position, but if Nintendo can pull something off quick, they can hopefully be saved.