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NIntendo can make comments about not leaving the console business but ultimately its down to consumers to decide that. If they come to market again with a gimmick and an underpowered console at a highly inflated price they will probably have to leave the console business. I bought a wii u and do like it but its performance level is a joke for late 2012. It can't even match 360 or PS3 most of the time. They have released 2 home consoles now that were severely underpowered. They have built up an expectation in consumer's mind that they produce low performance hardware. Frankly their next console needs to be something special.

As for the wii u all they can really do is sell it cheap as a budget console until they have something decent to replace it.