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Dropping the Kinect was the right decision, especially in long-term. Microsoft at least acted and tried everything to prevent a premature death of their system.

Price is one of the the most important success factors. Of course the sales did not jump up immediately but this is because the X1 and PS4 both currently have even less games than Wii-U so there is absolutely no reason to buy one of these systems yet. A $199 tablet-less Wii-U Sports HD bundle would sell exceptionally well. At the current price the mass-market is way out of reach for Nintendo and nobody that never used the tablet thinks that it could actually be fun to use it. The table is the biggest roadblock for success.