9 ideas that could save Nintendo (and how they'd play out)

The plan: The Wii U normally costs $300/£249, which some would say is a fair price for a console and tablet combo, particularly with the different game bundles Nintendo offers with the system. But when compared to the PS4’s $400/ £349, the Wii U is a slightly harder sell. Chop off, say, $50 and the Wii U’s value becomes more obvious, no doubt spurring on sales. If the Wii U can’t be the most cutting edge hardware, then it should widen the price gap to better distinguish itself.

Will this happen? This isn’t very likely in the short term, unless hardware production becomes remarkably cheaper soon. Slashing the MSRP would likely increase sales, but Nintendo would also make less on each system sold. Wii U sales may be a problem, but negative cash flow is a bigger one. Getting less revenue from the Wii U (perhaps even losing money on each console sold) isn’t all that helpful--then again, I would’ve said the same thing before the 3DS’s huge 2012 price drop.

The plan: So it’s tough to make the Wii U cheaper as is, but what about removing some features? How about replacing the GamePad with a normal controller? Or taking out the Wii backwards compatibility? Or maybe just remove the disc drive and make Wii U an all digital system? Any and all of these could make the Wii U a more attractive machine for consumers, and allow it to reduce the price without taking a bigger loss on the hardware.

Will this happen? Nintendo has been resistant to all of these so far. Company President Satoru Iwata want the GamePad to be more integral to the system, not less. Cutting backwards compatibility seems more possible, mainly because Nintendo did the same with later versions of the Wii, but also too soon. As for an all digital version, Nintendo is definitely happy about its current downloadable sales, but until online console gaming grows more overseas, I don’t see Nintendo going fully digitally.

The plan: To many consumers, the Wii U simply isn’t getting the job done for Nintendo. The name makes some assume it’s an add-on for the Wii, it lacks mainstream hits like Wii Sports or Wii Fit, and the graphics and features can’t keep up with PS4/Xbox One. It’ll like look worse by comparison over the next few years, so it’s time for Nintendo to cut its losses and swiftly release a new, truly next-gen system that can keep up with the big boys.

Will this happen? It’s an attractive but unfeasible fantasy at the moment. Iwata has said again and again that he’s not only committed to Wii U, but values fun games over fancy tech. And then there’s the fact that designing and manufacturing new hardware is a very long process. Lastly, how many early adopters will that next system have if the company burns its loyal fans by killing the Wii U in less than three years? This one has too many drawbacks to be a reality.

The plan: So if Nintendo is having all these home console issues, and isn’t ready to start over with a new system, why not just give up on home consoles altogether? As has been the case for more years than not, 2013 saw Nintendo’s portables out-earn consoles by a large amount. While the 3DS isn’t doing as phenomenally as the DS did, it still does great all over the world, particularly in Japan. If Nintendo focused all its resources there, it’s profits would surely increase.

Will this happen? Eventually, maybe. The Wii U’s design already implements the dual screen philosophy of the DS and 3DS, so a merger of portable and console development is only getting closer. Iwata recently acknowledged the possibility of having a console that’s also a portable. Personally, I wouldn’t be surprised if the successor to 3DS and Wii U weren’t the same device, but I don’t see that coming for a few years yet.

The plan: This is the one suggestion that won’t die, and it’s undeniably attractive, especially to those outside gaming. Mobile gamemakers are raking in billions on simple games as Nintendo struggles, and stockholders are watching Mario’s earning potential be greatly overshadowed by the likes of Angry Birds and Candy Crush. Nintendo should jump on the bandwagon because it needs mobile gaming to survive in today’s market.

Will this happen? Mobile games earn a lot of money, but it’s also a tumultuous market without proven sustainability, the type of business Nintendo usually avoids. And Nintendo has never been keen on sharing revenue with the likes of Apple. Then again, the company is clearly testing the mobile waters, at least as a way to enhance its console games. Nintendo just announced an iOS app that interacts with the Mario Kart 8 community, and I doubt this will be an isolated incident. But will Nintendo developers truly embrace mobile development, and even if they do, could Nintendo titles actually succeed with the decidedly fickle phone users?

The plan: Satoru Iwata is the first new leader Nintendo had seen in five decades when he took over for the late Hiroshi Yamauchi. Iwata oversaw some of Nintendo’s most successful years, but the post-Wii era has seen more businessmen calling his leadership into question. With increasing turmoil over his decisions, some are predicting he’ll leave in a massive corporate shake-up. If the company had drastically different management, many of the previous suggestions seem much more possible. Will a stockholder mutiny make Iwata jobless?

Will this happen? First off, this is hard to predict because Japanese businesses don’t normally have the kind of executive turnover you see in western companies. Top level positions like Iwata’s are normally very entrenched, especially with loyal executives and the fact that much of the stock is owned by the company, which resists a hostile takeover. If Nintendo suffers even worse losses in this fiscal year, Iwata may resign as a way of apologizing to investors and consumers, but he’s more into taking paycuts as penance than putting his job on the line.

The plan: Sometimes the best thing to do in a crisis is relax and take your time. Just stay the course and ride out these lean years. Allow the Wii U a natural, five year lifespan while the company plans a successor, much like Nintendo did with the GameCube at the start of the millenium. With massive cash reserves to fall back on, Nintendo can lose money for the next few years while it prepares, slowly transforming itself into a leaner, meaner company that can take on the world with the next round of consoles.

Will this happen? From the outside, this seems to be Nintendo’s current strategy. Unlike former competitor Sega in 2001, Nintendo has the luxury of being able afford losing money on an unpopular system while it plans for the future. But those savings aren’t going to last forever--Nintendo can survive one Wii U, but I’m not so sure if it can take a consecutive hardware flop.

How would you go about fixing Nintendo’s current situation? Throw in your own suggestions in the comments, but be sure to give a thorough explanations like mine. It’s the polite thing to do.

And if you're looking for more Nintendo history, check out 8 other catastrophes that Nintendo averted and 50 bits of Nintendo trivia.