4.) Bring online functionality up to MS/Sony standards.
Free online is a big selling point.
I think this is the biggest issue. When you've got friends playing games online, you buy the same system so you can play together. That means an entire group of friends usually goes for either PSN (more recently) or Xbox Live. Nintendo isn't even in that contest, but now that they're on HD hardware they could be a bigger player if they added a comparable online system with friends lists. Even better if they bring 3DS users along for the ride. I hoped Club Nintendo or the Nintendo Network would be used for some of that, but I don't see it happening any time soon.
The one thing that would really sell me on a premium service here, and I think a lot of other gamers too, is if they threw in a pile of VC games each month. To the article's point, Nintendo could very easily do a Netflix style offering where you get access to a big game library as long as you subscribe. Maybe they rotate the collection, so if you really like Mario you can buy that title and always have it available, but otherwise you're still getting a decent pile of games to pick from. It seems to be working well for PSN's Instant Game Collection, and Nintendo has a much larger catalog to offer.
The best advice I've heard for Nintendo is to sell the WiiU without the Gamepad. Nintendo states this is $100 dollars of the cost. So, here are the benefits:
WiiU $199
" 'nuff said" quoth Stan Lee.
Several good points, but I don't see this happening. The most recent lesson comes from Kinect- if you don't bundle it with every console, nobody develops for it. If Nintendo pulled the gamepad, or didn't include them in the first place, I seriously doubt many games would use it. At the very least it wouldn't be the primary control option like it is now. And without the gamepad, it's really just a Wii HD.
I do like the idea of a 3DS as an alternative controller or second screen, but I'm not sure it could completely replace the gamepad due to the low video resolution and different controls. Still, individual 3DS controllers for each player would be great on some games. I'm thinking local 8-player Mario Kart, racing on 3DS systems while watching highlights and a map on the TV. Who could pass that up?