Sadly, I am not too sure myself if the Wii U can compete, even if games like Chronicles X and a new Legend Of Zelda are due out this year. Personally, I believe Nintendo will ride the tempest that is currently increasing, profit off anything they sell, since the Wii U still sells at a profit, and try again the next generation. There are amazing titles on the Wii U, like Bayonetta 2, Wonderful 101, Pikmin 3, Monster Hunter 3 Ultimate, Hyrule Warriors, etc., but even those titles didn't do enough to help the Wii U stay competitive with its rivals. In addition, dropping below 100k in the latest NPD didn't do any favors either.
In the end though, the Wii U is a great system, but initial attempts to market the system, along with differentiating it from its predecessor and using only the existing consumer base from said predecessor were big issues which Nintendo couldn't recover from. All Nintendo needs to do is profit and try again. They will do much better the next time. 
" It has never been about acknowledgement when you achieve something. When you are acknowledged, then and only then can you achieve something. Always have your friends first to achieve your goals later." - OnlyForDisplay
