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I think Nintendo just assumed with the changing mobile/handheld markets a small incremental increase for a home console would usher in a bigger transition. I dont think Dev's were ready, if Wii U launched alongside PS4/One i honestly think the perception would have been different and it would have had more dev support not to mention beefier hardware.

It was just sort of introduced too early and no one knew quite what to do, both consumers and devs and its just hard to rebrand in light of public perception.