by the time those GC games were top notch and high budget, same cant be said for the majority of WiiU games

Well you can't plan with things you don't have. I'm going with there was just a gap they couldn't fill properly.

Im not really sure what that has to do with anything. Im not talking about sales, just what did Nintendo have planned for the first half of 2014 before Donkey Kong, Wii Fit and Watch Dogs got delayed. Literally Mario Kart is the only thing they had lined up from Jan-June.

If I had to guess, Nintendo was at one point expecting the first half of 2014 to look more like this:

• January - Wii FIt U, 4th Wii Sports Club game
• February - DKC: Tropical Freeze, LEGO Movie
• March - 5th Wii Sports Club game, LEGO Hobbit
• April - Bayonetta 2, Amazing Spider-Man 2
• May - Mario Kart 8, Watch Dogs
• June - Yarn Yoshi

So Several things seem to have gone wrong

Wii Sports Club and Wii Fit U were probably deemed likely sucesses, considering their relatively low budget and being sucessors to huge series. Therefore, their non-impact was probably surprising to Nintendo. A worse-than-expected performance for the first Wii Sports Club titles might have led to the team scrapping development of future titles to instead work on the next Animal Crossing to get it out in 2014. Which is not a bad idea in the long run, since Animal Crossing U is almost certainlya better investment than Wii Sports Club Baseball and Boxing, but it hurts in the short term.

Bayonetta 2 was announced as early as September 2012. For comparison, the original game was announced in May 2008, and was ready for release in October 2009. So if assumptions had to be made, Bayonetta 2 being completed a year and a half after announcement, aka March/April, was probably a safe bet. The game's actually being a Summer release in Japan suggests that the team just needed a few extra months.

Watch Dogs is the whole Rayman Legends fiasco again. Nintendo expected Ubisoft to deliver, only to have them delay the Wii U product in the name of every other platform. Considering how the devs of Rayman didn't know about the 7 month delay until two weeks in advance, it's probably safe to say Nintendo didn't see the Watch Dogs delay for just their system coming. ESPECIALLY since it was going to be a 2013 game not very long ago.

Yarn Yoshi is potentially the most interesting story of the bunch. Nobody ever expected this to sell as much as DKC: TF or Mario Kart 8, but we heard about Yarn Yoshi as early as a year ago, and Good-Feel hasn't released a big game since Kirby's Epic Yarn in 2010. My guess: after Nintendo's bad 2013 financial circumstances, they were told something along the lines of "The investors want Freemium, so make something that's Freemium and not garbage!" And that's how Rusty's Baseball came into being. Problem is, even a minor eShop project could slow down Yarn Yoshi by months, especially if Rusty's Baseball required Good-Feel to make the game from scratch.

So, how did Nintendo react to all this? eShop stuff. NES Remix 2 was added to the lineup and GBA games were rushed to the Wii U.

That doesn't make any sense.
Budgets were MUCH lower back in the days. Doesn't matter if it was top tier titles or not.

Simple character models, endless repeating low res textures, no online code, much smaller teams etc.

Your forgetting NES REMIX 2. Nintendo counts these as well guys. Sure it does zero to persuade new buyers but I genuinely feel like Nintendo believes these small download games like NES Remix, Dr Luigi etc. are meant to be enough to fill these gaps =(

DKC, Wii Fit and Watch Dogs were all holiday 2013 titles and were delayed in Oct (Dec for Wii Fit) so those 3 games play no role in what Nintendo originally had lined up for 2014.

Not sure where the exact figure is coming from but this doesn't sound like trolling from his side:
http://www.polygon.com/2013/8/7/4597900/why-the-wonderful-101-doesnt-really-begin-until-the-second-playthrough

"We've never used this size of a team and this amount of time to build a game before,"

Definitely the most expensive game Platinum Games has created (before Bayonetta 2 at least). So should easily be $20m without advertising.

Sonic Lost World, Mario 3D World and Pikmin 3 aren't that conservative either.

are you telling me that theW101 costs about the same or more than Uncharted 3???

do you realize how stupid that sounds, and please all WiiU games are cheap as fuck, all look like HD Wii games, Mario 3DWorld is the only one that makes a good use of WiiUs GPU but thats it.

Can't blame them for being efficient with their budget. But that's the big exception and that's been proven dozens of times.

Homefront was $50m and had a 4 hours campaign with terrible graphics and a few online modes.

Hell Red Steel had a $15m budget on Wii (more than Gears of War 2)

So what counts is time and team size. Not so much the look of the game.

Also another Kamiya quote from above interview:
"There's X amount of content until the ending,' I will say that there's more volume to this game than Bayonetta."
Bayonetta sold 2m copies and apparently not profitable enough for SEGA to let them make a sequel.

Still surprised ?