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Soundwave on 22 March 2013
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I don't think the system is "done", it's just the modern GameCube.

It's a Wii without the appeal the Wiimote first had six/seven years ago and hence that casual audience is basically gone elsewhere.

The appeal of the Wii when it came out was that it was the "simple" game console anyone could use and it was counter-marketed perfectly against the "complicated" XBox 360 and PS3. Mario Kart and Mario was just a bonus really, like dessert after a nice meal.

But today, the "simple game fix" concept has moved on to smartphones/tablets which provide much cheaper software. Casuals don't care about physical controls or HD graphics, if anything the Wii U controller is undoing all the progress the Wiimote made -- it's big, bulky, awkward looking, filled with scary buttons and joysticks (lol).

For people who want a more core experience, the system will take years to match up to the XBox 360/PS3 library, which will also probably be cheaper than the Wii U indefinitely. So for budget gamers and parents looking to buy their kids a console, PS3/360 wins (more affordable, far more selection).

For the hardcore players who are tired o their 360/PS3 and want to move on, the PS4/720 is going to the be the platforms with all the next-gen content, so Nintendo can't win there either.

It's basically only Nintendo fans that gotta have a very specific fix of Mario and Zelda and so on that will be willing to pay $250++ to get that. And that audience is small. Stripped of the casual crowd, Nintendo's appeal drops dramatically and there's a lot of redundancy with Nintendo IP (ie: the guy who likes Super Mario is probably the same guy buying Smash Bros, so it's not like these two "monster franchises" are bringing in completely different consumers).