Image.
Nintendo's #1 problem is image. They had EVERYONE'S attention when they finally unveiled the GAMECUBE but blew it. Sure Nintendo fans (like me) didn't mind the design too much, nor did the image problem mean much to us 'cos we were gonna buy it for the games anyways. But everyone else had their hopes of Nintendo finally rising up to Sony CRUSHED. This was Nintendo's chance to grab these people and say: "we're serious this time", but instead they just told them: "we're just a kid's company". I remember this very clearly 'cos alot of developers and gamers WERE excited about the "Dolphin" project, but when Nintendo botched the unveiling (I, the Nintendo fan loved the unveiling, but the rest of the world did not) then they left themselves wide open to attack. Then here comes the X-BOX unveiling and everyone who had their hopes crushed by the GAMECUBE suddenly latched onto the X-BOX as the truly serious competitor to Sony. It had more features, more power and most importantly it's image was more serious. Nintendo was WAY too focussed on the Japanese market at this point, they gained alot better Japanese support 'cos of this, but they let Microsoft steal their western support in the same move. I would say that they, in fact, ignored Microsoft as any sort of real competitor 'cos they were wearing these Japanese focused goggles at the time. The design of the system, small and trendy really fit the Japanese market, but in the west they appeared like nothing more than a toy company. So, before GAMECUBE even launched Nintendo was pegged the "kiddie" company, not 'cos of content or the games, but mearly 'cos of the bad design. Then you have MS with all their money, power & influence coming in and it's any wonder GAMECUBE has done as well as it has...Nintendo just shot themselves in the foot before they even launched. Then...no Mario at launch, REALLY poor advertising and not enough of it. Retailers, gamers, publishers...the industry as a whole just pigeon-holed Nintendo into this child's toy category even with games like RE, ED & Metroid on the way. Then the whole Zelda WW thing and bam it was over in the mainstream's mind.
Nintendo needs to fix their image with "Revolution"...they'll have everyone's attention again when the system is unveiled. It CAN'T look like a toy, it CAN'T be under-featured to the competition, it CAN'T appear less powerful and Nintendo CAN'T look silly when they need to look serious...if that happens *again* then the industry *again* will peg Nintendo as the "kiddie" company before they even start. My suggestions for Nintendo to fix their image with the system itself is to have:
-NO pastel colors (have a black option and have that color be the main color...NO purple)
-NO odd shaped designs (it's being said that they're going with a design more like N64 and less like GAMECUBE...a good idea IMO)
-NO odd looking controller (the GAMECUBE controller is a dream to hold, but most won't even touch it 'cos it isn't "cool" looking)
-NO under performance (not only in specs, but don't have silly piss-poor 4 megabit memory cards & some small 1.5 GB discs when the competion has more to offer in those categories)
-if PS3 has BC, DVD & BR playback, "Revolution" should too
-online plan (built-in network, LAN, self-server HD, WiFi "free" network they keep leaning towards)
-whatever revolutionary features the system has, don't alienate the system with them...give the idea of these features as extra's (and put these features IN the box so that they work, don't try the connectivity buy extra hardware plan...doesn't work)
I garauntee this will solve ALOT of their problems. If the system looks serious then Nintendo will look serious. If it looks silly, then Nintendo will again be categorized as last place before they even launch. If Nintendo takes everything more seriously then they'll look more like a serious competitor and likewise the industry WILL follow suit and take them seriously. In no way do I think Nintendo's image will be changed *just* by making a more serious looking console...they need games that back it up. Where they have holes in their own library they need to fill them with third party exclussives. They (not someone seperate...THEY themselves) also need to do a M rated game or two from the start as well as their usual E stuff. I think a *great* game they could use for this is the Japan-only "Famicom Detective Club". Adults love serious psychological thrillers, murder, mysteries...and this is a game that could be the next exploding genre...the murder/mystery. And no, I don't mean survival horror or psychic combat games...I mean a serious game with a serious plot and adult theme's. Nintendo should plaster their name on this, advertise it like hell and BAM they'll show that they're changing without hurting their family-freindly image 'cos it's a new and seperate franchise from their traditional ones. Their efforts in getting closer to Bandai is also good...the Japanese anime IP's Bandai have are a step above what Nintendo's own franchises are age-wise and some of them (Cowboy Beebop) could be taken even more seriously!
I have lot's of (doable) idea's for helping Nintendo's market presence! But I think first & foremost they need to fix their image and I'd say a BIG way would be to unveil a serious machine in "Revolution" next E3 when they've got everyone's attention. Once they show the industry they're serous, the industry will take them seriously.