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Microsoft is.

The gamepad is a losing proposition and Nintendo has had almost two years to come up with something for it and still have nothing great.

The Mario Kart 8 + free game bundle would be far more appealing if it was $229.99 or something with no game pad.

Nintendo is just stubborn as always and has a hard time admitting when they are wrong. They sank the N64 by pointlessly wasting years developing the 64DD which went nowhere instead of just owning up to their mistake that ignoring CDs entirely was a mistake. If they had released a reasonably priced CD add-on for the N64 by late 1997 or early 1998 even, they probably could've gotten a lot of third party support. Now they are going to ride the Wii U into the ground by tethering it to a needlessly expensive controller.