The problem with this logic is the numbers don't support it. If you look at Wii U's first December NPD for example it's lower than the first December for the PS3, despite the PS3 having an even worse launch lineup and being $500/$600.

The launch in Europe pretty much the get go has been frosty.

To me this indicates people aren't enthused by the concept period and the signs were evident pretty much right from the start. The poor release schedule hasn't helped, but all of the Wii, N64, GCN have had post-launch lulls in releases. This isn't anything that new for a Nintendo platform.

I dont think its a complete failure. The concept is great. The Gamepad can really make a difference in how we experience some games.
It´s great to take an FPS, for example, and have all control possibilities (Gamepad, Wiimote+Nunchuck, Classic Controller, Pro Controller) available

I just think that Nintendo should have given WiiU a little more processing power, so the product could have a longer commercial life.

I´m loving my WiiU so far but I think that Nintendo will need to come with a new home console in less than four years.

Both, though it´s a whole new level of failure in execution..they can´t even get the message across to the public that it´s a new system.

Thus far, both. The console isn't dead yet and it still has time to prove itself but certainly since launch it has neither proved the worth of the game pad nor supplied the games people want.

Concept.
The Gamepad just can't be used in any meaningful way. Nintendoland was nice but aside from "asymmetric multiplayer" there's no reason for it to exist as a mandatory controller. Mario Bros. doesn't benefit from it, Pikmin 3 neither (Miyamoto himself said the best way to play the game is the Wiimote), Wind Waker would've been more exciting with a Wii remote control scheme, Donkey Kong can be played with any controller and Mario 3D World as well.

There's a few games that benefit from the gamepad but it's never a must-have. Offscreen play is nice but not a selling point. The gamepad also makes it hard for non-gamers to pick the console up and adds like $100 to the retail price. If something makes your product more complicated, expensive and bulked without adding value you should better drop it.

This depends on what is deemed as a failure. Even with games from the start, WiiU was never going to come close to Wii as it isn't enticing to the userbase which made it a success. This is a concept failure. Their execution could have been perfect and we'd still only be seeing negligible returns.

A system having games doesn't magically mean it's going to be a success.

My answer is concept btw.

I think Nintendo have failed thus far to make a compelling demonstration of the gamepad's value, other than offscreen play which personally i think is great, but that's not what he said.

He said the best way to play it is controlling with the Wiimote while using the gamepad as a map.

That´s what most of the reviews so far say too. It seems that the Wiimote is better for pointing, but the Gamepad makes the game easier to understand and play

It´s great to have options, so players can suit their needs as they please. A game like Cod, for example, can be played with Wiimote+Nunchuck, Gamepad, Classic Controller, Pro Controller and any combination between those for multiplayer.

Both, but in different ways.

Right now the execution of the hardware itself is flawed. There isn't the first party software to demonstrate its uniqueness, it is over-priced, poorly advertised, and the basic bundle is an unnecessary use of shelf space and manufacturing resources.

Conceptually, Nintendo's vision of Wii U's place within the industry is flawed. Nintendo sought to partway position it more directly in competition with the PlayStation and Xbox business by pursuing the support of Western publishers, EA, Ubi and Acti in particular, ignoring that these Western companies have established and expanded their businesses overwhelmingly on PlayStation and Xbox branded devices. Nintendo would have been far better expanding their own studios, driving for indie support (as it is now) twelve months ago, buying studios such as Platinum, Atlus, Mistwalker, Next Level, and securing co-developing and publishing deals with more companies. Removing some financial risk while providing outright support, and even perhaps providing an IP, would result in more developer support and help to avoid the software droughts so damaging to Nintendo.

You can see that with the recent deal for Sonic games with Sega, and the indie drive happening behind the scenes, Nintendo are gradually heading in the right direction. It may be too little, too late for Wii U to become meaningfully successful, but Nintendo need to begin the work of expanding, acquiring and collaborating for the sake of their own long term future and viability.

Nintendo's single biggest problem is the lack of enough software to allow their systems to continually sell strongly. This would be solved not by seeking titles already available and more popular on rival platforms, but by providing more Nintendo software--whether it is the renewed presence of F Zero, Wave Race, 1080 once a generation, the utilisation of old IP like Star Tropics and Ice Climber to provide new gameplay experiences, or more partnerships like Lego City Stories, Bayonetta 2, Wonderful 101 and Sonic Lost World. Provide enough of those experiences consistently, and just having a Nintendo machine to play Nintendo games becomes a more broadly competitive prospect.

considering the competition won't even have that while being even more expensive, I'd say it's a good trade off.