The way I see it there is a huge choice of underpowered hardware including wii u. This includes phones, handhelds, ouya, older generation consoles etc. This market is saturated. PS4, PC and Xbox One represent more powerful dedicated gaming hardware. If your a hardcore gamer who wants a more ambitious gaming experience you won't be buying a wii u.
Both Sony and Microsoft will benefit from royalty payments for their 2 consoles with the release of multiformat games but Nintendo will not because most publishers aren't supporting wii u and of those games available they will sell in low numbers. The wii u is weak hardware with a small userbase who simply won't buy multiformat titles on that console. I'm a wii u owner but I'm not going to buy a multiformat title for it when its better on pc, ps3 or 360 if I own one of those devices. I bought Sonic Racing Transformed for my wii u which was rated very highly on wii u but its not even close to matching the PC version which I bought for a fraction of the wii u version price. I can play the PC version in 3D at 1080p with improved textures and at 60fps. The standard 360 controller you use with pc games have analogue triggers so you can play the game properly. Gamepad doesn't have these. Frankly the wii u is rubbish for multiformat games. Even need for speed most wanted which has a few improved textures over ps3/360 still plays better on them due to analogue triggers, plus they support more online players, plus the ps3 has better sound support like 7.1.
The wii u is not competitive hardware. It's only really suitable for games built from the ground up for it. It's not really suitable for multiformat games as generally these are designed for console with more cpu resources.
Yes Nintendo need to make more powerful home consoles in future. It may not need to be as powerful as Sony or Microsoft designs but the wii u is a joke in performance terms. I don't blame people for ignoring the wii u. Nintendo truly deserve the rejection that the wii u is receiving. I could probably list about a 100 things wrong with the wii u.