It's not the console per se. Sure its lack of power is holding it back a bit, but that is not the be all and end all of why it's failing. Nintendo is still relying on decades old franchises to try to sell its system. What Nintendo failed to learn is that part of the success of Wii was new first party IP. The fact that new IP was mostly all party/fitness/casual fare that would not turn people into gamers is why Wii was a 3/4 of the generation phenomenon. Most of Nintendo's first party offerings to the long term gamer was more or less more of the same: Zelda, Mario et al, Metroid, Donkey Kong.
HDifying those ancient franchises just isn't cutting it with the gamers. Nintendo is fixated on its mascot franchises and hasn't moved on to give the maturing game audience what it wants. Bring new and compelling first party franchises suited to the 30+ gamer on stream and the Nintendo console will succeed. It may not be too late to do that with Wii U. The question is does Nintendo really know what it needs to do on the game side of things? If it just releases a new console in 2015/16 without changing what it does with the games then it may sell better because of the specs, but it won't set the world on fire. Indeed PS4/Xb one will be mid cycle by 2016, which means a sizeable, growing and active install base, which means once again 3rd parties will be shy of Nintendo because they are starting from scratch. Nintendo can only really launch another console when PS4 and Xb one get to the late gen stage with declining HW sales and software sales starting to fall away too. That's when Nintendo could swoop in with new hardware and capture some 3rd party enthusiasm, with some awesome 1st party stuff that 3rd parties want to emulate (which they can't do with Mario and co, becuase gamers won't buy Mario knock offs.
Trouble it late cycle launch means, once again, Nintendo having and underpowered console if/when PS5 and Xbox One 2 come along.
“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell
"When the power of love overcomes the love of power, the world will know peace."
Jimi Hendrix







