Casuals buy consoles for family / social activities at home. 

For example, right now where I live it is the start of winter...  The ambient temperature outside is -17 Celsius...  What can you do at home as a family at that temperature that is active?  As a family we can beat each other up, or get off their butts and play games like Wii Sports, Kinect Sports, Just Dance, Dance Central, etc...  Also, who wants to drive to a gym at that temperature and with two feet of snow?  That's what fitness games can do... 

I agree that casual numbers in games are dispersing to different devices...  But, casuals buy consoles because they want family oriented, active, and participative entertainment when outdoor conditions frankly are awful.

http://www.youtube.com/watch?v=fiqVWV_ueHY

Blackbond and Jason Rubin tell it like it is  about Nintendo's Wii U.  The console is completely irrelevant to the Dedicated Console Industry.  And their irrelevancy is hurting their franchises.  Look at the pitiful sales of the latest installment of their biggest Cash Cow Mario across the globe.  Especially coming in after the PS3's Knack ( even though the game isn't getting the respect it deserves ) in the UK and coming in 7th in its second week in the latest game sales forecast from Japan.

Personally, I only see two ways that Nintendo could be relevant to the console industry.   One would be to drop the Wii U entirely and become a third party developer and the other would be to drop the price of Wii U to $199.00.  I've been criticized for suggesting that Nintendo drop the price of Wii U to $199, but it just isn't at a suitable price point at $299 versus the third party support and the technology under the hoods of PS4 and Xbox One.

Really while lagging far behind the 8th Gen consoles in specs the Wii U is only a step up from the 7th Gen consoles in power.  And the more expensive versions of PS3 and Xbox 360 ( the $250 models ) come with decent sized hard drives in comparison to the Wii U ( which doesn't even have a hard drive at all ( even back in the 1980s I remember my dad talking about the difference between our PC and my Nintendo Entertainment System.  He said, "One way you can tell the difference between a toy and a real computer is that a toy doesn't have a hard drive.  In that respect, Nintendo hasn't evolved since the 1980s ) justifying a more expensive price tag for them than for the Wii U.

If Nintendo hopes to have any chance of remaining relevant in the console industry, they really need to cut the price of Wii U to half of that of PS4 or its going to be left in the dust in the 8th Gen and lead to Nintendo being a 3rd party developer at least where dedicated home video game consoles are concerned.

Nobody is saying there isn't a market for motion controls or camera capablities, what we're saying is majority of hard core gamers do not care about that. Look at the kinect for example, that single device has pissed off so many hardcore microsoft loyal fans because they do not care about the device/feature yet it is being shoved down their throat. 

Lets face it the industry/consumers is/are becoming full of graphic whores whether we want to believe it or not, graphics matter. If nintendo want's to compete with sony and microsoft in the future they are going to have to bolster their hardware because hard core gamers like to play their multiplats on the console that is going to give them the best looking game. The years of "Graphics don't matter" are dwindling very fast and if nintendo doesn't catch up they are going to be left behind. 

Kids of our generation who grew up playing great games without spectacular visuals are getting older or retiring from gaming while the new generation are being raised on 1080p 60 frame per second type games and they're never going back.  (battlefield 4)(killzone)(forza)

But Nintendo didn't try to appease the industry.  Nobody wanted a screen on the controller, nobody wanted an underpowered console, nobody wanted Nintendoland or 2D mario as next gen efforts, nobody wanted asymmetric multiplayer, nobody wanted Wiimotes to carry over.

What exactly did the WiiU do?  Seems to me to be another Wii, only the gamepad failed where the Wiimote succeeded, but anything that tried to be another Wii was gonna fail anyway, most Wii owners will not buy another console.

You wouldnt be able to use a single platform to play all of them either and watchdogs is on Wii U.

I always find it amusing that when people talk about games, they always have to use the game library from 2 competing consoles to make the Wii U look bad.

Like I could make the PS4 look really bad by comparing its library to PC and Wii u combined.

However nobody ever does that as most people are not that desperate

Also dont get mad about the valid point about Sony games. For a console with an install base of 80 million, few 1st party games achieve sales about 5 million without being bundled and or heavily discounted. Look at Last of us. its supposedly one of the best games of last generation yet its sales are extremely poor compared to SMG the other great game of last generation.

It started to fizzle out in 2009.

The Wii has sold 43 million units since 2009. Fizzled out my arse.

It started to fizzle out in the Summer of 2009.  It did get the first 2D Mario game on a console since the NES era which allowed it to have decent Christmas numbers, but really PS3 has been gaining on it since the first $299 model was released.