Nintendo sold less than 10k to retailers. The only reason why retailers won't buy them from Nintendo is because they aren't selling a lot Wii-U's to consumers. And extra stock from what? Clearly not the holiday's. Retailers might have sold more than 10K in the past 3 months, but i doubt that VGC numbers of 6k-9k a week in Europe are correct.

So their downfall started with their biggest success ever?

To the degree of your own opinion, I guess.

No matter what good news or bad news may come, there will always be someone calling it the other way.

The PS3 sales did not change because of games. In my opinion it has always had games. I think it's fortunes change as the price got lower.

I didn't say that the amount of units it's moving now is huge, my point was that the wii did very well because Nintendo was able to get even non traditional gamers to buy it. They have failed to do that with the wii u and I think a lot of it is that there is just not that much novelty in a touch screen. Maybe 10 years ago but "touch" is so common because of the likes of apple, Samsung, amazon, and Barnes and noble; all of which i am sure many Americans own at least one product. We have this argument of which of the big 3 has the most hardcore gamers. And even argue over the definition of what that means but I will say that Microsoft and Sony probably have the most core gamers who are able to make purchases for themselves and tend to view gaming as a hobby. I am not saying that Nintendo doesn't have a core audience what I will say is that the generation will show just how loyal to gaming that audience truly is. 

Once it has loads of first party titles out, if it still doesn't sell then I'll agree 100% with the OP.

A measure a console has of quality is by what software it has.  Poor sales means...

1. Less third party support.

2. Less third-party support means less titles.

3. Less titles, means less chance of getting good titles.

4. Less good titles, means less reasons to buy console.

5. Less people buy console, it means less sales.

End result here is, unless you are a HUGE fan of Nintendo stuff, you need to ask if the second screen makes the console or not for you.

If Nintendo could actually put out more than one game every 6 months, and not just rehash their existing IPs over and over again when they finally do put out a new game, then they wouldn't be in the predicament they currently find themselves in.

yes because they gave up on the core userbase, the hardware was lastgen and third party support was weak because of the hardware and the crappy online support, all, the wii sold off motion controls, it was a one it wonder, it over with now, what does nintendo have the moment, the core userbase is what has been keeping consoles alive for the past 30 years, not wii mote controls. when you release a console thats lastgen in terms of graphics and thirdparty's want to make nextgen games you think gamers are gonna be line up to buy nintendo next console the wiiu, when 360/ps3 had 20x better graphics, good online support and way more games, they essiantaily missed a whole generation of progression, because they decided wii mote controls were enough

Nice way of ignoring all the facts. Nintendo hardware had been in decline since the NES,  gen after gen of focusing on their core userbase, with consoles that weren't weaker than the competition and yet their marketshare and total sales still declined. Yes a large portion of the Wii crowd won't be coming back but some will eventually buy a Wii U (some probably already did). There's no doubt in my mind the Wii U will do better than the GameCube and it most probably will outsell the N64, without the success of the Wii that wouldn't have been possible.