The problem for Nintendo is, that they are making the wrong decisions to meet the middle ground, and they have been quite foolish with HD graphics. Truthfully, Nintendo would not be in the same type of problem, IF they were able to get the games created in the first 2 years of the Wii U out in one year.
Nintendo should have been better prepared to launch games…and also be prepared to invest and provide the gamers with a variety of experiences for their platforms. They don't have to risk things with new IPs…but use the IPs they have well.
IPs and known characters are great…especially Nintendo's because they can be fit into almost any genre…but Nintendo is too careful with them. I loved Mario Strikers for the Wii, because it presented the Mario crew in a more rough and cool fashion. Imagine that art style with a Mario Paintball game. It could be Nintendo's online multiplayer game.
Nintendo needs to stop being safe, and take risks.
But further, I agree Nintendo shouldn't shoot for the moon in specs for consoles, but they shouldn't also look for the next big gimmick. It was like Nintendo saw the gimmick helped the Wii sell, and decided this next gimmick would sell the Wii U…after all it worked for the DS. However, some gimmicks catch on and others don't.
Nintendo used to be a company about refinement. I feel the SNES was a refinement and perfecting of a 2D console and a 2D controller. The N64 was in innovation console and the Gamecube was the refinement. That Gamecube controller was an amazing controller, and although some games suffered for the controller, the vast majority were awesome with it. Again the refinements were never about pushing the graphical or spec limits, but doing enough, and perfecting the experience.
However, Nintendo broke their own cycle with the Wii U. There was no refinement of motion control. No true refinement of online…just a new gimmick, and a few tweaks to the online structure.
Furthermore, Nintendo didn't take risks indeed to meet or surpass what the competition did better than them. Nintendo knew people hated Friend Codes, no universal voice chat, and many other standards….but Nintendo was too afraid of their family image…well guess what…nobody was truly worried about that. And gamers would have embraced you more if you came to the table with more for them. Nintendo needs to look at the industry and ask the hard questions….what ask the ways that Nintendo's uniqueness destroys our opportunities, and where does our uniqueness raise our opportunities?
The Blue Ocean strategy wasn't a bad strategy at all, but it could not be the only strategy. It should have been an additional strategy.
I do believe Nintendo is a crucial place in their history. They have been declining for 2 generations, and then had a huge hit with the Wii….and the buzz for Nintendo was infectious, but then the Wii U has squashed that buzz, and the Wii is looking like a fluke now. If Nintendo can not repair their relationships with 3rd parties, and can't revive their image as a home console next generation, I don't think Nintendo will have a console market in the future. And the portable market is going to be harder and harder to compete in with Smart Phones, Tablets, and other devices demanding our time.