Former Lionhead Studios boss Peter Molyneux believes Nintendo is capable of reversing its fortunes following Wii U's disappointing commercial performance.
In an interview with IGN, the veteran designer was asked what advice he'd give the Kyoto-based company with regards to Wii U's struggles.
"The problem with Nintendo is they did a fantastic job of finding these new players with the Wii," he replied, "and the Wii U kind of does that but also tries to bring in the existing gamers as well, so they may have lost their way a bit.
"But they're super-smart people. Never underestimate Nintendo. They're probably one hardware release away from something that utterly convinces us that they know exactly what the future of games should be.
"So I wouldn't deign to give them advice. I do find the Wii U big, I find it clunky, certainly it's not a sexy piece of hardware and I'm used to sexy pieces of hardware."
Nintendo warned in January that it expected to post a net loss of 25 billion yen (£147m) for the financial year ending March 2014, citing much weaker-than-expected sales of Wii U and 3DS hardware.
"Wii U sales showed some progress in the year-end sales season as we released various compelling titles from the summer onwards, launched hardware bundles at affordable price points and also performed a markdown of the hardware in the US and European markets," Nintendo boss Satoru Iwata said at the time. "However, they fell short of our targeted recovery by a large margin."