NIntendo is in a difficult position. They didn't really think hard enough about the gamepad as a controller (it's too large for small children) and isn't the ideal controller for a lot of games. Lack of analogue triggers creates more problems for racing games. They really should have gone with a joypad with a more standard shape and a small touch screen in the middle. The wii u performance level is utterly pathetic. They got away with it for wii but not so lucky with wii u.
Simple casual 2D games are really fully achievable on phones and tablets nowadays. There is no point Nintendo trying to compete with that they can't, things have moved on.
Nintendo need a console that will get third party support. Most multiformat games on wii u perform below that of the 360 and PS3. Developers are just moving away from the older powerpc designs to concentrate on the two major x86 consoles plus pc and Nintendo release a PPC console with weaker cpu resources than 360 and PS3.
Nintendo needs to be the first to introduce a new home console perhaps late 2016. It needs to be x86 based with a decent gpu. It needs to comfortably outperform ps4 and xbox one by a significant margin and they need to get other developers on board.
