Casuals seem to have no problem buying $300+ tablets/smartphones/etc. The Wii U is not *that* expensive. People just don't want one.
It was a mistake to think that casuals are the same as hardcore players either. Most of them probably don't give two craps about Wii Fit U in HD graphics for example.
They don't upgrade the same way core players do IMO.
Case in point Just Dance on Wii U sold Just Squat. Nintendo Land failing to hook is troublesome too ... 3-4 years ago a game like this (a mini-game Mii compilation based around a Nintendo theme park) would've sold millions easily. Today it shows that like Wii Party, which really didn't take off in North America either, that casuals are tired of the mini-game collection and have moved on.
Why pay $50 for Nintendo Land (or $350 bundled) when you can just download 4-5 games from the iOS shop for $5 that keeps you occupied? Again casual gamers don't care about things like better graphics or even physical controls IMO.
Planets Vs. Zombies, Angry Birds, Farmville, Cut the Rope, etc. get the job done for casuals in terms of occupying that short amount of time every other day they actually might feel like playing a game.
