Wii U's issue is price plain and simple. I knew a few Wii owners at work looking forward to continuing to play Just Dance on "the new Wii"... til they find out the price and decide they'll wait for a price drop.
Wii launched at what? £179.99 with a game which had very universal appeal? A proper full fat Wii U is £299.99 (the £249.99 includes no software and so you need to pay £40+ on top to get a game with it). It's a price a big chunk of the Wii's big demographic will not be prepared to pay.
Nintendo's best chance lies with Japan's new government and if they return to devaluing the Yen. Both Nintendo and Sony's profitability have taken a severe hammering from the rapid appreciation in value of the Yen against other currencies such as the Dollar/Euro and Pound. A devalued yen would allow them a price drop much more quickly in the West.
RIP Dad 25/11/51 - 13/12/13. You will be missed but never forgotten.
