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Mainly: Software! It flopped because it had no truly epic games. If the Wii U had Zelda BOTW on launch, it would have been much more successful. The 3D Mario was also not that exciting at least not in the first trailer which was shown at E3. The only game that generated some buzz at least was Mario Kart 8 and that came too late, likewise for Splatoon. There were too many generic 2D platformers. I know that they were all great but that's not the type of games that gonna sell your hardware to the mass.
Second reason: Marketing. They didn't nail the point that set the Wii U from the Wii apart. They should market in a away that people know that with the Wii U its a HD console and foremost that you can play all the great Nintendo games on it and this time also all the great third party software like AC 3, Batman and so on. Granted, that statement would have only been true for a short time but people would might have know by then that it is the only console were you can play the best of both world (Nintendo + 3rd Party)