At this moment, Microsoft is doing more than Nintendo.

MS: They've been on the ball lately for X1: Constant updates to their console, a kinectless bundle finally announced and arriving soon for summer, making their services compete with PS Plus, Sunset Overdrive almost here, etc.

Nintendo: I'm still not sure if they are listening to their fans, but the Mario Kart 8 bundle looks really awesome. The added bonus of getting a free game digitally is pretty nice too.

Why have unnecessary peripherals cluttering up the place, when you can consolidate it into one controller. The gamepad is the swiss army knife of gaming, it has tradtional analogue sticks and buttons etc, touchscreen interface, operates the tv, NFC functions, double up as a standard tablet for browsing etc, off tv play and movie streaming. So much better than a shitty joypad or pro controller, but thats my opinion.

Exactly my stance as well.

Offering a SKU without the Gamepad has its complications, but it may be their only option if this E3 doesn't show off something really compelling for it.

On the other hand, an XB1 SKU without Kinect for $100 less is a no-brainer for Microsoft.

Because 90% of todays "gamers" are not gamers but mainstreamers that dont give a fuck about everything but graphics? Why do you think so many franchises fucked up last gen?  + WiiU is a really dumb name   almost all mainstream gamers I know have no Idea whether WiIU is a Wii addon or a seperate console.

Also (no offense to anyone) smart or patient people dont buy a system without games.

Microsoft is.

The gamepad is a losing proposition and Nintendo has had almost two years to come up with something for it and still have nothing great.

The Mario Kart 8 + free game bundle would be far more appealing if it was $229.99 or something with no game pad.

Nintendo is just stubborn as always and has a hard time admitting when they are wrong. They sank the N64 by pointlessly wasting years developing the 64DD which went nowhere instead of just owning up to their mistake that ignoring CDs entirely was a mistake. If they had released a reasonably priced CD add-on for the N64 by late 1997 or early 1998 even, they probably could've gotten a lot of third party support. Now they are going to ride the Wii U into the ground by tethering it to a needlessly expensive controller. 

I think both are making the right call. Microsoft has to be able to compete directly with the PS4, and (as sales have shown) it can't do that while priced $100 higher and bundled with an unpopular peripheral.

The Wii U is already $100 cheaper than the other two systems, and it was already selling poorly long before either of them launched. Its problem is not its price, but its lack of compelling system-selling software. The Wii U is already a misunderstood product. The GamePad itself is the focus of most of the ads for the console. Remove the GamePad from the box and you'll have some confused target customers on your hands.

I never wanted Microsoft to drop Kinect, and I definitely don't want Nintendo to drop the GamePad. I want to see what first and third party studios can do with it.

I've been playing games since I was a toddler and, at age 30, I'm growing restless with the same old games, controllers, and options we've had for generations. Things like the GamePad and Kinect get me excited about new and interesting gameplay possibilities.

So, personally, I think Microsoft is making the wrong move and Nintendo the right move, creatively speaking. I'll leave the financial analysis to someone else.

Don't compare the gamepad to the kinect... please.

The Wii U has a better library than the other two systems. 

Wii U's problem is the hardware philosophy in general. No one wants what Nintendo is trying to sell, no one asked for another PS3/360 level console (everyone already owns that), with hand me down third party support, heck to be honest I think most people are "Wii-ed" out in general. They played their fill of Wii Sports/Fit/Mario Kart in 2006-2009 on the Wii and don't want to spend another $300 on that similar type of experience. 

For a lot of people the Wii became their "Netflix player" and not a whole lot in later years and hence there's not a lot of enthusiasm for their brand, nor are people wetting themselves over a new Wii Fit or Wii Sports Club or a new 2D Mario. 

The Wii U GamePad is the entire reason the console was created. Removing it creates extra work to recode the operating system, and it renders certain games useless without it. Its really not comparable to Kinect, considering Microsoft already gives you a seamless option to deactivate it.