I almost fully disagree with your WiiU analysis. A large portion of the games it launched with were multiplats or late ports, with very little unique content to warrant the price of a new console on a sustained level. It's no different from the launch of the 360, which actually was inarguably a big leap tech wise, but still couldn't compete with the PS2's better value and games library right off the bat. And remember that the cheaper 360 SKU was at the "friendly" $299 price, proving that people valued games over tech.

However, where the 360 at least had 3rd parties to keep it from experiencing a long drought without new software, the WiiU has had no new games from 3rd or 1st party. Bad planning by Nintendo, no doubt - but it still comes down to a lack of games.

So yeah, the main culprit is a lack of games - particularly games that set the WiiU apart (and to a lesser extent, the need for a $50 cheaper price tag). If Nintendo do indeed get their act together this year and deliver great games and a price drop, I believe we'll see consumer reaction more akin to the 3DS rather than the Gamecube.

The wiiu also has not titles. The PS4 is launching with many exclusives, and I am sure the nextbox will as well. They will also have much more functionality and a way stronger fan base.

But you are forgetting all the other features of next gen consoles besides games:

Always on consoles (no start up waiting).

Download a game while you are playing it (big one).

Instant interface (no waiting for XMB to load).

Full browser and apps capacity without having to leave or re-start a game (pause game and watch some movie in netflix, check a guide in gamefaqs or talk to someone through Skype then go back where you left in the game).

Games updates and firmware downloads in the background (big one for PS3 users).

New PS4 controller with headphone jack and cross game chat (finally) and other video chat features on the fly with the new PS Eye.

And many more we don't know yet.

Could happen, but I think an advantage to MS/ Sony is that people will know that they have new consoles cause the name won't be confusing. Like, WiiU doesn't sound like the next generation successor to the Wii, but instead sounds like a new version of the Wii console with a tablet controller.

Nobody asked for a successor to the Wii. There lies the problem with Wii U. The vast majority of Wii players moved on to tablets and phones. Another group, though not as large, got into PS360. The true Nintendo loyalists are the ones who bought Wii U at launch, and of course not all 100% of them got it. Nintendo may just be realizing they made a new console for an audience that doesn't exist.

Yup.. They are going to be as bad if not worse. A lot of people are going to be pretty shocked. Just don't say I didn't warn ya :P

All you need to do to is look back 5 years, when PS3 and 360 started slowly. Now pile a shittier economy, and probably higher prices on top of that, and you can get an idea of how bad things are about to get. Now, that's not to say that will continue to sell poorly, after all look at how PS360 got it together. I even think it's possible if not likely that EVENTUALLY they will outsell Wii U. But I think it'll take 2 or even 3 years for sales to really pick up, and Wii U will keep a lead for awhile.

I think most people are more than happy with their PS360s at the moment. Why should they upgrade?  Especially when these consoles are still getting games. And I think most people view their graphics as "good enough." Sure the people at sites like this are excited but let's be honest, they repressent a very small core of gamers who are always looking to run out and buy the next big "thing" in gaming. How is the average consumer, who doesn't live and breathe gaming, going to view these consoles?

The other thing you need to consider are the games. What are the major franchises that will sell boatloads of PS4 and 720? You've got the declining Final Fantasy series, declining Halo series, Call of Duty (which is multiplatform, and has probably peaked), GTA, and not a whole lot else. I just don't see too many huge games that are going to push sales of these consoles, at least when they're at the $400-$600 range.

The whole "the casuals have all moved onto tablets/phones" thing is a myth; yes, the audience had shrunk, but Just Dance 4 selling over 5 million on Wii since the end of last year shows there's still an audience for casual games on consoles. Problem is, the Wii U's out of their price range at present. Casuals gravitate towards cheaper consoles, and the Wii U is currently the most expensive on the market.

It wil be very interesting to see what Microsoft and Sony will do with their 7th gen consoles when their next consoles launch.

No, because they call it the PS4 and not the PS U and confuse customers

Nah, I just don't think they will make it feeling like a separated PS4-PSN. I mean, at least half of the PS4 games will also be on PS3 at the first 1 or 2 years, so it's ok if your friends only have PS3s