I don't think the Wii U would've done much better with "Wii Sports 3".
New Super Mario Bros. Wii was a big killer app anyway.
And the 3DS did launch with the first DS blockbuster -- Nintendogs.
Nintendo's problem is these franchises have all under gone major decline from the last generation.
It's like saying Activision is crazy for not making Guitar Hero the center piece of their holiday 2013 lineup -- the time for that franchise is over.
Look at this year's Just Dance figures too -- casual "fads" have a shelf life of about 3-5 years, once that time period is up, it's over.
Casuals can get their gaming fix nowadays for $1 a pop or even free, why pay $40-$60 + $250-$350 for hardware when it's much more convienant to play on a tablet (just pick it up and play anywhere, kids can use it on the go, mom can check her email) or a smartphone that's with a person all the time.
Wii Sports can't compete with Candy Crush and Angry Birds. Pretty sure Nintendo's own marketing research told them the same thing, which is why they're trying to sell Wii Sports Club and Wii Fit U in different ways.
