It's not just power. Power is a huge factor, but Nintendo would have had to do a lot to get the crowd that is going for PS4 Xbone. They would need:

Solid online

More power

Different philosophy

all third parties on board

More "core" first party titles.

The Wii U is exactly what the world didn't want.

@Soundwave

You seem to assume that a majority of gamers are, forgive the expression, graphics whores.

I am fully aware that many are. But there are many more, like myself, who care more about gameplay and substance over purely upgraded, shinier graphics.

In that regard, I stand by my statement that Wii U, until tomorrow when Mario 3D World drops, has not had that "MUST HAVE" killer IP title to make people really want the system. Once Mario Kart and Smash Bros., two of the highest selling and most popular franchises in gaming, period, release next year, along with a stunning HD Zelda game (not merely an HD remake/port), I think you will see things continue in a positive direction for Nintendo quite a bit. Raw power isn't everything. It's how you use it. Game design > pure numbers = every time.

yes, because Nintendoland wasn't revolutionary and the WiiU should only cost $250 since it doesn't have next-gen graphic. But it's still not to late for Nintendo since they don't business the same way Sony and Microsoft does business. They can make game that are 100% more fun to play regardless of graphic, once these game hit the market they can recover market share.

WiiU doesn't need to control the market.... But they do need a secure loyal customer base ....

Nintendo is simply not in direct competition with Sony and Microsoft, though people will always buy Nintendo consoles for their first-party titles so I can still see them selling a solid 18-20 million units this gen. A far cry from the Wii's numbers, but I think there's a lot of confusion regarding that consumer base, which in turn leads to all the doom and gloom Nintendo articles that pop up all the time these days. Nintendo fans are still very actively buying and supporting Nintendo products, and the company keeps raising the bar for themselves, as evidenced by the recent Super Mario 3D World. The assumption that they've 'lost' a huge audience is only partially true, as it's more likely that most of those casual users who were 'turned on' to gaming by the Wii have moved on to phones and tablets rather than other consoles.

I don't think so. Give the console time and stay positive.

Saying it doesn't have "next gen graphics" is rather redudant considering it's hardware is literally capable of any fancy graphical effect the other systems can pull off. There seems to be a gross misunderstanding of just what Wii U's graphical power actually is, because you haven't seen it scratch the surface much yet. You saw a glimpse with Pikmin 3, and you're seeing some fanciness out of Mario 3D Land. But you have yet to see games like X and Zelda that will really push the hardware. But I suppose those won't look "next gen" either?

Of all the stupid things Iwata has said (and there sure is an abundance of them) this would have to be the most damaging to the Nintendo brand. Nintendo are absolutely competing with Sony and Microsoft in the home entertainment sector and Iwata's refusal to acknowledge that has led to them creating an inferior product which most consumers are subsequently ignoring.

Nintendo's weak hardware ruined it for them.

You're sadly miss informed if you think that WiiU can produce graphic comparable to PS4 and Xbox One which are actually next gen graphic machine. There no secret here developer knows exactly what the WiiU can do, it's a slight improvement on the PS360. It can produce HD graphic. 

The WiiU as 2 gb of ram compared to the PS4 and Xbox One 8 Gb ram, The Ps4 and Xbox One use about 1.5 gb of ram to simply run their OS.

http://ca.ign.com/wikis/xbox-one/PS4_vs._Xbox_One_vs._Wii_U_Comparison_Chart

At the very least the graphical difference is less then it was last gen Wii vs PS360.