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So the rationale behind the Wii U's stumbling being interpreted as being a virtue is that failure will open Nintendo's eyes to the light guaranteeing their next console in 4-5 years will be a smashing success?

You should realize if the Wii U's fortunes don't change when all the old standby Nintendo franchises hit the platform and the PS4 and XB1 eclipse it in sales, that the future of Nintendo consoles will be in jeopardy.

If the Wii U becomes this generation's Game Cube, then Nintendo's next console will more likely be a cut spec box in the interest of cut rate production costs to accompany a lower MSRP than Sony or MS. It's not going to be a big improvement over the Wii U, barring any innovative, yet cheap new feature set that runs the risk of being gimmicky or unnecessary.

I think the reality is that Nintendo is acutely aware of how badly the Wii U launch and subsequent first year has gone and that if they had a brilliant fix, they wouldn't be waiting until their next hardware generation to put it into effect.