Nintendo doesn’t need to get out of the home console market, it could simply revolutionize it by combining the concept of the home console with its portable success. One of the great features of the Wii U is that, if I want to, I can simply unplug it from my TV and plug it in next to my bed and play games on the gamepad itself. It makes me wonder—why is the Wii U a home console, in the traditional sense, at all?
Imagine the graphics of the Wii U on an updated version of the 3DS (or some new DS machine) and then pair that with some sort of small receiver that allows you to play all your handheld games on any TV. There are Android devices that do this already, of course, but they only play Android games—nothing even close to par with Nintendo’s first-party offerings.
This strikes me as a good, simple idea. Rather than continue to focus on a stand-alone living room console, why not focus on handheld gaming (a segment that they’re still doing pretty well in) with some new AirPlay-like functionality to get these games to work on TVs? The Wii U is almost the opposite of that approach. They got it backwards.