I disagree I think nintendo could have released a wii u at a higher price with the same power as the xbox one and it wouldnt be selling any less at all. I know its basically the gamecube model but that model at least had high third party support and was surely more profitable than the wii u. 

Nintendo cannot and would not compete with X1/PS4 directly, irregardless of power. They'd just be the other HD twin with lacking infrastructure nor will to get into content bidding wars. They would have lost even more money on the WiiU than they have already in your scenario even if it were to sell the same. The problems of "Nintendo gamers only buy Nintendo games" wouldn't have gone away, 3rd party wouldn't be here, and Nintendo would just be stuck burning even more money.

The GameCube was their last attempt at being an industry leader in specs, and their then president made it clear that the company has no place to be competing on hardware. They aren't a mega-corporation, they are game makers.

You don't think that if Sony retreats from the handheld market/becomes completely obsolete that the Western developers will just go completely mobile? I would like to believe that.

Nope. I doubt it will ever get good third party support, although it mainly depends on how well their next console sells.

OP didn't say anything about Western developers. They already aren't supporting handhelds.

Which is pretty funny, since they had some success there last gen, despite hardly making any actual effort.

No, Nintendo could build an x86 console with good tech and do all the things Sony/MS do to get third party support, and they still wouldn't get the third party support they have. It's just a fact I've come to accept.

The only thing they can do is to carve their own niche in the gaming market, and if what Iwata's next-gen ideas are what I think they are, they can do that very easily. Honestly, if their plans work they won't really need the third party support that Sony/MS get to be successful, just 2nd party exclusives and indie devs.

I do not believe they will get major multiplat stuff. They might get unique releases that companies like Ubisoft, Actvision think may have a niche audience for. Movie companies do this all the time. They have their big blockbuster releases. However, they often still budget for smaller releases that cater to a smaller audience. I really wish game companies did this more. I know that is where Indies come in, but I think there is a more middle ground. Example The Wonderful 101. Unique game with I am guessing a modest budget yet not quite an Indie game. Now it sold poorly and that is where Wii U owners are going to have to step up if they want games from the bigger publishers to return and take another shot on the Wii U. Buy Bayonetta 2, still hurry up and pick up Hyrule Warriors.

Nope. I don't think they will ever see solid third party support. Perhaps they will get better than they are getting now, but never the amount that their competition receives. I think they should focus on their own output and try to cover a broader range of genres.

Man, LEGO, Sonic, Disney, skylanders are all multiplats.

Bolded: not any more.

The others don't count because I don't like them.