9. Make their systems better all-in-one devices.

Nintendo's always been reticent to make its game systems into universal gadgets, but Apple's Swiss Army Knife of an iPhone has changed the equation. Most children want iPod Touches because they can do many things. The DSi added dual cameras and AAC music playback, but it's still nowhere near as versatile as an iPod Touch (which costs nearly the same for its 8GB version).

Read more in our related article: "10 things Nintendo must fix before battling Apple"