Purple said: 1) There are plenty of ways Nintendo could save consumer goodwill if they dropped the Wii U in 2014. If Nintendo came out and said our 2014 titles will be the last games released for Wii U, but hey they'll be free digitial downloads for all Wii U owners I think most owners would give them the benefit of the doubt. Also, most of us Wii U owners are long time Nintendo fans who wouldn't stop loving the company just because they had a bit of a flop. I bet most Virtual Boy owners still buy Nintendo products. You also are misunderstanding how business works if you think shareholders will just let the company throw away good money after bad because they can. Yes, they technically could afford to support a flop but this is a publically traded company who have a legal responsibility to their shareholders to maximise profit. I'm not even going to touch the 2014 line up comment. Sure it looks good to us as Nintendo fans but Wonderful 101 was one of my favourite games of all time and look how that turned out.
2) It would be totally fair to assume Wii U will sell less than Gamecube at this point. The Gamecube is currently well ahead in sales as has already been pointed out. There has been absolutely nothing from Nintendo to suggest either Zelda, FExSMT or Yoshi are coming out next year. DK was delayed into February because of a massive hole in the release schedule so this should tell you there isn't a "huge" lineup for 2014. I don't think anyone is expecting Bayo 2 and X to do too much in excess of 500k (and I'm being generous there). Mario Kart and Smash Bros. are the only major titles we know about for next year and these are games that were also available on the Gamecube. Smash's system selling potential will be further reduced by the fact that it's on 3DS as well.
3) I agree Nintendo don't need to 'win' the generation to maintain a healthy profit and market share. But they need to do a LOT better than what they are doing. If they continue along this path they are going to drive their IP's into irrelevancy. And when it comes down to it, Nintendo is entirely reliant on its IP.
So no, I hope we aren't done with the discussions about the Wii U. Sticking your head in the sand and banning discussion is exactly what WON'T help Nintendo through this period. This is a site about sales and it is entirely fair that the Wii U is being criticised. It's sales are something we haven't seen since the Virtual Boy. Try not to take the awful sales personally and if it's really bothering you go play some Wonderful 101 and console yourself with the fact that billions of people are missing out on such a masterpiece
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I disagree with parts of your point one. Of course this is all speculative so I won't say that you are wrong. However I disagree that if Nintendo drops the wii u that fans will give them the benefit of the doubt. There are different levels of failure and to drop a console early because no one is buying it rates at the very bottom in the eyes of the consumer. What you called "most of us Wii U owners (that) are long time Nintendo fans" are pitifully few and that is obviously the reason they would drop the system in the first place.
So to drop the console will piss off some of the little fan base you have for the system and most likely keep others away because they have little faith in your support of your own products. The gaming industry has moved on since the virtual boy and mistakes or failures are more deeply felt and long term. Back in the day Sega could release a new console every two days and "get away" with it but those days are gone.
The rest of your point one regarding the economics of the situation and everything else you said I agree with. So from my point of view that leaves me with the question which is worst?
Risk dropping the wii u and pretty much kill your home console market or ride it out on the back of the 3DS success?
Love or hate them Motley Fool did highlight the plight of this being a likely scenario. They and others also point out what can be a less than favourable outcome of Xbox but right now Nintendo takes the beating.
The point of the last bit is not to incite but just to say that many may gloat now about the Nintendo's situation but that old adage still ring true.