In my opinion, while powerful hardware will certainly help your 1st parties being better, it is more important as potential for having lot of 3rd parties on your platform - 3rd parties love easy porting their titles between various platforms, and lot of their titles on your console means your customers not going to other platform for them, which directly translates into revenue for you as platform holder.
If you rely exclusively on your 1st parties to move your console, and insufficient hardware is reason (or big part of it) that 3rd parties are skipping on porting to your platform, I think you need something that is so big that will act as counterweight to loss of 3rd parties (and then some). In case of Wii, in my opinion, that was Wii Sports with motion controls (hence making Wii primarily a Wii Sports console, not Mario console, as we're used to). In case of WiiU, unfortunately, I don't see anything similar.
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