I'm under the impression Sega couldn't afford the losses on each sale of the console. Nintendo is breaking even or above water on WiiU for each console sold if I'm not mistaken. That creates two completely different scenarios for decision making. If Sega had been making a small profit on each console, I'm sure they would have kept the Dreamcast alive for the generation.
The definition people are using as failure for WiiU is it isn't 1 in sales or isn't keeping up with Wii. Obviously the situation is not optimal, but Nintendo is in a stable position with WiiU and they are making money on that console. In their eyes it's presently marginally successful after being a huge drain. We won't be able to render the final verdict for another couple of years.
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