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Lack of games is the main thing, no matter a systems shortcomings, it will do decent with some big Nintendo games.

The other big thing I think is lack of focus. The casual has all but abandoned them, and yet they make party games like Wii U party, Nintendo land, and Wii U fit. It's time to abandon them Nintendo. Focus on getting great core games on the system, and improving the online. The Wii U is a lot of bad decisions wrapped into one, but at least own those decisions, and make the best out of it by making games for Nintendo core, and gamers who are open minded enough to buy a Wii U if the games come.