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It's not just Nintendo. It's Vita, and although it's too early too call, it's PS4 and Xbox 720 too.
Industry watchers are seeing a very clear pattern of people moving to smartphones/tablets in huge and ever growing numbers. Game developers for those platforms are raking in the dough, console game makers have continually struggled to be profittable (Activision excepted thanks to WoW). So the question becomes: Can WiiU change this dynamic? Top that off with all of Nintendo's classic issues - poor 3rd party support, alienated the core, fickle casual market who don't actually care about HD or online too much (and might just stick with Wii or iOS) and there you have WiiU news.

It's justified analysis. Wii profited by doing something new, immediately accessible to everyone and fun. WiiU may be fun but doesn't really seem new and has lost the accessibility that made it a hit amoungst older consumers. Wii ignited people's imagination over what could be (but largely failed to meet those aspirations) where WiiU has been greeted by a collective shrug.

However Nintendo has always been the most innovative video game maker. If it fails to stop the bleed to iOS/Android then expect even greater doomsaying for PS4 and 720 (except amoung the fanboys (and a lot of vg press are fanboys) who will live in denial for years). However, to there benefit, PS4/720 will do a better job of maintaining 'deep', high production games and their fan base than Nintendo ever will. Unfortunately trying to make a profit off that fanbase is hard and getting harder all the time.