Theres a major difference between the Wii U and Dreamcast...and that comes to games...The Dreamcast library from Launch to its demise was heads and shoulders above what the Wii U has brought to the table thus far

NO! The Dreamcast had Sonic Adventure!

and Wii U have Mario. what's your point?

Well Sega's system did compete more directly with Sony's playstation do than Nintendo's systems do, so i don't think you can make that comparison that directly. Nintendo has a much bigger following and as the Gamecube era showed they can be self sustaining to a certain level.

However the Gamecube could compete with the PS2 and Xbox directly if it was needed and multiplatform games where equal in quality overall compared to it's competitors. In many way's the Gamecube could still be a primary system even for ''hardcore'' gamers. But with the Wii Nintendo kind of gave a big middle finger towards that hardcore demographic by going almost entirely casual. In some ways you could state that Wii-U is in a worse position than the Gamecube was, since Wii-U can't even try to compete with PS4 and the Next Xbox for the ''hardcore'' market.

You're right, more competition won't help WiiU, marketing and games to end the current software drought will. And yeah, I'm sure the Witcher and deep down are more popular than a mario Kart or 3D Mario. Hell, I wouldn't be surprised if the Wind Waker enhanced port beats those games' sales.

Also, i like how you can look into the future and tell that Kinect 2 is way more appealling.

No Sonic Adventure, no failure. That's all.

Those two games (The Witcher 3 and Deep Down) won't simple be enough. And for what we know Deep Down might be a bad game or just average and not worth a new console (like most new IPs that come on a console's launch). 

Most games that have been announced for the PS4 and the rumored Xbox are going to be cross gen muliplats (Watch Dogs, Assassins Creed, CoD: Ghost, etc). Those are the type of games that sell consoles and all of them are available on consoles you probably already own. This means the potential new buyers are smaller than most people think, especially considering a price tag that will most likely be $400+ (not counting subscription base models, if there are any). For the PS4, unless you are a big fan of Killzone and Infamous (basically the Sony fanbase) there are no reasons to get the system at launch or 'launch window', no different from the Wii U. 

Granted this is based on what we right now as fact, there might be some games in the future, but for now that's speculation. 

Marketing and games is all you can answer, MS and Sony can have that too you know. I was pointing that besides exclusives there are games like The Witcher and Deep Down which are multiplatform games not coming to the Wii U (like GTA5) and they are increasing in number every month. N64 and Gamecube had 3D Mario and Mario Kart too and Sony still beat them, the Wii motion control gimmick was wonderful, the Wii U gamepad is not.

Is not time travel or tarot reading is just looking at trends, kinect is a huge success even with its shorecomings, a much improved version bundled with every Nextbox is very appealing.

So you're saying that PS4/720 will be the same reception wise like Wii U was? I dont agree but i kinda see where oyu are coming from.

The situations of the two companies are very different. Sega endured failing hardware after failing hardware after the Genesis/Mega Drive (CD, 32X, Saturn just to mention a few). Sega also experienced back to back losses from 1997 to 2003 (in comparison Sony Computer Entertainment suffered three years of losses with PS3 and Nintendo only had one year of full losses). Moreover, Sega lost almost all third party support with the Dreamcast due to early discontinuation of previous hardware and piracy, Nintendo has more less maintained the same third party support for their systems since the Nintendo 64. Also, pirating on the Dreamcast was exceptionally easy, you could pirate on the system using a regular CD without the need for a modchip; the Wii U needs an expensive modchip to simulate the disk drive (which means there can be no cheats and hacks or the ability  to play eShop titles; and Nintendo can easily do a system update to block the hardware [they have easily blocked WiiKey before on Wii] and those who choose not to update their system will not get access to new games , eShop, DLC, Miiverse, and other in-game online functionality), furthermore due to the proprietary nature of the Wii U optical disks there have been no clean disk image dumps as of yet. The last nail in the Dreamcast's coffin was not bad sales (in fact if I remember correctly the console was selling quite well towards the end, though not for the right reasons [pirating!]) it was the change in Sega of Japan's management who wanted to focus on software rather than hardware (I believe there was an interview with Sega of America's former president which confirms this).

The situation with the Wii U is different from Dreamcast but I feel it is more similar to the DS & later 3DS (though less severe, as the 3DS was selling far fewer units and had far less software at launch than the Wii U) ; in fact, two years ago there were articles stating that the 3DS would be the next Virtual Boy and that Nintendo should pull out of the hardware market because it was no use trying to compete with phones, tablets, and the more powerful PS Vita, which of course did not end up being the case. The problem with the Wii U is that it had a powerful launch but it did not continue to have the software nor the clear message about what the console is in order to keep the sales momentum going (the 3DS had the same problem; people think the Wii U is just a Wii with a tablet much like they though the 3DS was a DS that displayed games in stereoscopic 3D; and much like the Wii U the 3DS did not at launch have the flow software to keep momentum going). Nintendo has to correct the Wii U issue like they did with the 3DS. Firstly, they have to have titles lined up and ready for release for the end-of-summer period right through the holidays (with a study flow of titles ready for the period after in order sustain momentum). Secondly, they have to reduce the price of the system (around $50 is reasonable) in order to give people a reason to consider purchasing this system as opposed to its {theoretically) higher priced counter parts; hardware bundles with key software would also be useful. Lastly, they have to advertise this system and let people know about the games and features available for the system, the reduced price, and why it is different from a Wii.