Solve supply problems:
The PS3 doesn't seem to have this issue and a recent run on Xbox 360 consoles is expected to be solved by March. Yet Nintendo still can't deliver enough Wiis to keep up with the demand. The company has not been forthcoming on why they can't make enough so it's still something of a mystery. However, consumers won't wait for much longer if Sony and Microsoft make the PS3 and Xbox 360 cheaper, as they might do later this year.
Get buzz going on upcoming titles:
We have an idea on what Sony and Microsoft might release for their consoles this fall but little to nothing has come from the Nintendo camp. Nintendo needs to let its audience know now that they aren't going to run out of games for the ultra-important fall season. Yes, Super Smash Bros. Brawl and Wii Fit will likely be huge hits this spring but so will Grand Theft Auto 4. It's always been the fall season that's been crucial to the industry (well over half the sales in the US come between September and December) and Nintendo needs to get going or they might loose audience share.
Appeal more to hardcore gamers:
No matter how much attention the media gives to the Wii's capture of the casual gamer market, the truth is that the best selling game of the fall season was the Xbox 360 version of Call of Duty 4. That means Nintendo is missing out on an equally huge market for their games. There have been some hardcore game titles for the Wii but none of them have appealed to that market quite like Call of Duty 4 or Halo 3, for example. If Nintendo continues to ignore hardcore gamers, that audience will continue to prop up the Xbox 360 and PS3 consoles, allowing both of them a chance to catch up to the Wii in the US.