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The Wii U failed because the hardware was horrible and it didn't appeal to any market in particular. Nintendo tried to reach both the hardcore and casual gamers with the system (hence "We" and "You") but it didn't please any crowd: The core gamers thought the system was underpowered and lacked games and the mass market didn't like the console because it was the complete opposite of the Wii (just look at the huge and bulky gamepad compared to the Wii remote) and didn't feature many high quality mass market games (compare the horrible and clichéd Nintendo Land to Wii Sports). Thus, the Wii U failed on both fronts and only hardcore Nintendo fans bought it.