If the Wii u died it wouldn't b Nintendo's last console, I think the way it would happen if it kept selling badly would be Nintendo would drop support for it and release a new system with a new image to avoid the Wii confusion (I think some casuals and less informed people still think its the same system) that is on par with the ps4 and next box.
They'd have the money to take another shot at the coming gen.

It will beat dreamcast it will not be last nintendo console - this future is not going to happen guys!

Personally I think the Saturn was Sega's best console. Not most successful, or even most prolific, that of course was the Genesis. But the Saturn, for it's time, I felt, was the best hardware they produced. It did decent early 3D gaming, while also doing 2D WAY better than Playstation could. I was really surprised (and disappointed) that N64 hardware also lent itself to good 2D, no load times, etc., but didn't get many 2D games at all, not even good ports of 2D Capcom fighters (that sucked on PS1 because of load times). But Saturn did them well, and had other great games like Bug, Clockwork Knight, Astal, Panzer Dragoon, Nights, etc. The ONE thing Saturn lacked big time, was a real Sonic game, and what Sega should have done, was made a REAL honest to God Sonic 4 for Saturn, 2D, sprite based, just great looking (like Symphony of the Night). That would have sold big time, and helped the Saturn out. But nope.

Dreamcast was a good console for what it was, and did have it's share of good games. At one point I was actually going to buy one, because of Marvel vs. Capcom 2, Ecco the Dolphin, Soul Calibur, and Castlevania Resurrection. CV was the biggest selling point for me, because it looked awesome, and I was looking forward to another game staring the FIRST "original Belmont" (before Iga's retconning bullshit), Sonia Belmont. So I was super bummed that Konami cancelled it (in favor of developing what I thought was a SHIT-tastic retcon fest on PS2). Long story short, I didn't wind up getting my own DC, because of that and because of $$$$. But one of these days I wouldn't mind grabbing a used one somewhere, along with a Saturn.

If the console's going to die, wouldn't it be better for it to not sell as much (assuming that they're going to have to manufacture and ship more if they sell more, rather than tap into existing inventory)?

I mean, I don't know how many games it takes for Nintendo to break even on Wii U sales, but if we assume that losing the console war would mean that Nintendo fails to get enough games on the system in the future to break even, then it'll be better for Nintendo to just cut its losses.

It's not gonna die. It just might end up being a system with a 4 year run like the cube or original Xbox.   I can understand all the predictions of Nintendo going 3rd party because it comes from wishfull thinking. I'm a Nintendo fan and I almost want them to become a 3rd party so that Nintendo games can once again be made available on the most powerfull console of each generation. I want a Zelda game that pushes the PS4. But it's not going to happen. Nintendo IMO is still way more profitable releasing their own hardware. In the end they will make a significant amount of money off the Wiiu hardware and will also earn royalties from 3rd party games. It's too much to give up. I could however see them partnering with either Sony or Microsoft at somepoint where they wouldn't pay any royalties and they would get paid for making all their games exclusive to probably the XBOX. Microsoft has the most to gain because their system could be branded as Nintendo in Japan and they could actually win Japan with Nintendo as a partner.