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Soundwave said:

Wii without the casuals is just a GameCube in terms of market appeal. So it's not surprising that the Wii U is basically just achieving those numbers but at a higher price point (so even lower sales).

There's no reason for casuals to stick with Nintendo, they all have smartphones, so why pay $300+ to play Nintendo Land when you play Angry Birds, Boom Beach, Clash of Clans, Candy Crush for $0.

If you're a casual gamer, odds are you only really want to play games for maybe 30 minutes every couple of days at best, smartphone games totally eat that up, so what's the point of an entire game console for that audience? 

Why wait for Nintendo's annual big Wii _____ concept title when smartphones have dozens of new titles every week and some new thing breaks out and becomes the cool water-cooler talk at the office every 2-3 months. 

Casual market is fickle and wasn't going to buy another game console just because it had better graphics and a new type of controller. Wii Sports, Wii Fit ... been there, done that. Nintendo didn't have anything new to offer and can't compete with the volume of casual games on iOS/Play store. 

You underestimate the casual market. You know how annoying it is to always be sasked to play Clash of Clans? Every casual gamer I know are addicted to games like that. They don't 'play games for maybe 30 minutes every couple of days at best.'