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I think Nintendo expected MH 4, Pokémon and 2DS to do more for the handheld business. It`s a honest expectation.
Personally, i think the PS4 and XB1 hold them back.

As far as Wii U goes, sales are the result of mainly 2 flaws:
- Coming unprepared for the generation;
- Bad/confusing showcase of Wii U right from the beginning (something that took basically a year to really start adressing).