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Why hasn't the Wii U failed yet? It's an epic fail from a gamers stand point, BUT if one knows Corporate Finance one understands that it probably isn't a failure. These companies don't see their products as we do. To place it as easily as possible, first it all depends on the console manufacture and secondly how they see their business.

If Nintendo for example sees the gaming business as two businesses, the first is the hardware business and the second is the software business, Wii U is just another product that happens to be in their hardware business. If the hardware business starts going up, does it matter if Wii U isn't selling as well as its predecessor especially since 3DS is very successful though one could argue it's not as much as the DS from a "console sales" perspective. Console sales isn't the end all, but we the gamers make it the end all.