So, instead of making another N64 they'd have another Gamecube on their hands? Neither strategy seems great for them. The issue with Nintendo is their biggest success stories (NES, Wii and every handheld they have ever made) are hard to reproduce. The NES was the only game in town, the Wii was a phenomenon and the handheld market is shrinking due to tablets and phones.
Their best bet was to try to find something close to the Wii again (hence the naming) and it failed for them because that market is fickle.
Honestly, of the three Nintendo has the hardest path to success. Sony and Microsoft are allowed and even celebrated by making steady progressions; Nintendo has to do something different or the N64, Gamecube and now Wii U pattern of being nowhere near the top continues.
