How did Sony turn the PS3 around but Nintendo couldn't do the same with Wii U?

[Farsala]

Sony had a worldwide brand with PS, and they did not want to lose brand power. They were willing to make losses to keep the brand strong. This is in contrast to Nintendo and the Wii brand. It is likely Nintendo will drop the Wii brand and create yet another one.

PS3 was also potentially the strongest console of the 3 within its generation so developers could keep supporting it for years. Wii U is the weakest and by a long shot.

And of course Sony had strong developer relations from PS2 era and some of those may have slipped a bit, but they managed to keep most of it.