Of the 3 main markets, i think it's safe to say that Japan has been the one who just hasn't responded to the increasing library of Nintendo games on Wii U.
Also, it's probably THE market where if you your console doesn't have 3rd party support the chances of an actual recovery are null.
Vita started bad but because 3rd party support improved the console sales' improved.
Same thing for PS4 - at least, recent sales seem to suggest that.
Now, specifically about home consoles, Nintendo's situation has been bad since the N64. With Wii being the exception.
The core market always belonged to Sony. It's nothing new, really.
Sony has been having solid relationships with 3rd parties and consumers for years now. and that helped Sony create a strong market for their consoles filled with 3rd party games.
As a result of that, you see Wii U getting pratically no support whatsoever as 3rd parties don't bet on a console that consumers don't care about and is also failing abroad and can't be a worldwide venue for their games.
In the case of japan, why NX really needs to be Fusion:
HD development has meant nothing but lack of games since 2012 - even before, if you take into consideration that development for Wii was pratically non-existant since 2011.
Even after the lurning curve, and for a consoles in it's 3rd year on the market, nothing really substantial has changed. Wii U still hasn't got the kind of support that 3DS got in 2013.
You'll say that's natural since 3DS is not a HD machine, but now imagine how things will be when NX is revealed to be Nintendo's 2nd HD console and another form development (different architecture) has to begin.
Even if you take out HD development learning curve, how do you think Nintendo will do, having to support 2 HD machines that can't easily port games between one another?
And the answer is, badly.
If things are bad now for Wii U, they will only get worse because Nintendo will produce fewer games starting next year already, and that will make the console die a slow death before a new console arrives in 2017.
If in 2016 Nintendo releases both handheld and home console at the same time, not only will that use whatever interest consumers have for a Nintendo home console, but the ability to develop one game on both platforms will have two main benefits:
- Every (BIG) handheld game also comes out on NX Home console - which doesn't happen in the PSV and PS4 ecosystem. A plus for NX and something that will help change the mentality of what a Nintendo home console has to offer;
- By "killing" Wii U early they will have to take care of what would basically be 1 HD machine, instead of 2 with different architectures (Wii U and the NX handheld). Thus, saving enough manpower for more games per year (even new franchises), bigger games or even more partnerships with 3rd party studios (which greatly improves relationships).
