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Nintendo went into the Wii U launch with a lot of arrogance. Their initial sales expectations were way too high for what they had to offer. They thought they could sell the console on the Nintendo and Wii names alone, thought the touchpad would reel people in with another trendy gimmick like motion on Wii, and thought a DS Mario game would be enough for Nintendo fans and NintendoLand would be another Wii Sports.

They were wrong on all counts. This is a huge management screwup.

The 3DS is doing fine in Japan at least, there's plenty of games in the sales schedule, and some more (*cough Puzzle&Dragons cough*) being added soon.