While Nintendo has now confirmed the development of a next-gen, post-Wii platform (code named “Project Cafe”), not much is actually known. There are plenty of rumors though, varying with anonymous sources claiming HD graphics, backwards compatibility, and even a system more powerful the Xbox 360 and PS3. A playable build will be available at E3 – until then, we can only speculate.

Project Cafe Mock by IGN
Still, does Nintendo have what it takes to hold its place in the console wars? It may take some drastic shifting in strategy. Here are some strategies Nintendo needs to take to win things back.
Focus Less on Casual, Back to Hardcore: While there’s no debate on the success of the Wii (and DS), Nintendo has also pigeoned themselves into a difficult situation. Casual gamers were a relatively untapped market that Nintendo capitalized on, blowing away expectations and critics when the Wii first came out. However, these same casual gamers have now moved on to other platforms, finding very little need for loyalty to any one source of entertainment. Cheaper alternatives such as Facebook, Zynga, and smartphone games (Angry Birds) have stolen the spotlight. Microsoft as well has been chipping away at Nintendo’s base of family gamers with additions like the Kinect. While expanding out to the casual market can help increase revenues, it can’t be done at the cost of the hardcore gamers. At the end, it’s the latter that will be much more brand-loyal and stable as consumers.
Graphics Matter: Graphics doesn’t have to come at the cost of gameplay quality – take Uncharted 2, Crysis, and Batman: Arkham Asylum for example. Truth is, graphics and power do matter. Consumers have demonstrated this with their wallets. In addition, the Wii lost out to many of the top selling (third party) games. Aside from the top franchises like Guitar Hero or Madden, developers often didn’t have the resources to make a Wii-specific version. Likewise for consumers, it’s hard to argue in paying an additional $40-$60 for a lower powered version of the same game found on a PS3 or XBOX 360 (e.g Madden, Call of Duty, etc.).

Uncharted 2 for the PS3 - Pretty and fun!
Less Gimmicks, More Gameplay: Nintendo products have been primarily focused on gimmicks. Perhaps it’s that they can’t compete on the graphics or power front against companies like Microsoft and Sony. The DS did find popularity with the double screen – it was something new and different that was worth playing. The Wii followed up with motion controls. Now we have the 3DS with 3D. Still, even the Wii’s motion control has lost its appeal, especially with the Kinect. Don’t get me wrong, innovation is incredibly important, but it’s important to focus on ways to enhance the gameplay experience, rather than capitalize on a trend or find a way to sell additional hardware. Yes, the Wii made quite the splash, but today it’s most likely collecting dust on a shelf, taken out only for group events and parties (the modern day board game).
Third Party Support: What’s saved Nintendo thus far is their library of franchises and IPs. From Mario to Zelda, gamers are willing to dish out money just to play the latest iteration of these games. Yet, it’s also been this narrow focus that has shunned away third party developers that have found little to no support with Nintendo. Since the 8 and 16-bit era, new franchises and IPs have taken hold of the gaming community. Titles like Call of Duty have claimed top rankings in units sold – it’s important for Nintendo to make their next console a gaming device that extends past their own branded titles. You can only milk the Mario Kart and Smash Bros. franchise for so long before it gets old.

Nintendo's going to need full support (and better looking games).
More Than Just Gaming: Nintendo was firm to establish that the Wii was to be a pure gaming system, but today’s system has to be more than just that. Even Nintendo eventually took in Netflix. In this day in age, no man (or system) can be an island. Users want a way to consume content on their devices, whether it be video, music, photos, etc. If Nintendo really wants to stir things up, it needs to find deals with partners like Hulu, Pandora, Apple iTunes, Twitter, and Facebook (for starters). The idea is to keep the device on as long as possible. People are lazy and that extra step of swapping TV inputs can make a drastic difference in capturing that market share. Word of caution though – these integrations have to be done well. Even today, PS3 supposed Facebook “integration” is nothing short of a bad joke.
Fix Multiplayer: Online gaming has never been as popular as it is now. First things, Nintendo’s friend code system has to go. It was overly complicated and amazingly annoying to input. Friends lists, cross game chats, avatars, and support for online games will be crucial for the next round in gaming. Multiplayer also locks people into specific consoles. As Sony discovered, coming late to the market (with the PS3) cost them several new consumers that went Xbox, as their friends were already buying games on that platform. Multiplayer done right can lead to a snowballing network effect to increase market share.

Multiplayer needs and overhaul in the next system.
This next era will be an incredibly vital point in Nintendo’s history. This could be the make or break year for Nintendo. If it fails to (re-)capture gamers, we may end up with Mario games on Playstation and Xbox (just like another popular 90s icon known for its speed and blue colors). Can Nintendo make it? Perhaps. It’s not too late… yet. Will it? Only time will tell.