Wii-U has been struggeling since it's release, though from all territories it was relatively performing the best in Japan. Now it seems even that has come to an end.

So far this year Wii-U has sold 472k in Japan, in 2013 it did 578k in the same time frame. More importantly even with Smash releasing it only did 27k in the first week of December. To compare, without any notable new releases, Wii-U did 48k in Japan in the same week last year.

So with the two biggest games of the system releasing this year, it didn't manage to improve year on year in Japan. With such a blow close to home what will Nintendo do? How much lower will it end up this year in Japan and will this trend blow over to other territories?

Nothing, Nintendo is back on track to make profit. The Amiibo's might make them 1$ billion a year alone. They'll keep to their release scheadule and sit this generation out.

Perhaps this will make Nintendo focus more on the Western markets rather than Japan. Home consoles are dead there anyways, so maybe the next Nintendo system will be tailored for the West.

My best guess is that most of the Nintendo fans have already bought a Wii U, so we won't see huge bumps in its sale any more, at least not in Japan.

I think we have to wait a bit. People over there is probably too busy playing ORAS to buy the game. Smash U will sell better during the holyday weeks.

1 Billion of profit alone? I thought it was revenue where I read, I may be wrong though.

As for WiiU being down YoY is not too surprising considering the state of Japan right now on videogame consoles. Ninty will have to hurry making a sucessor.

No no stop quoting that 1 billion number. It was talking about the entire NFC market, not just Amiibos. 

I think they will sit it out. Being first worked for the Wii, but not for the Wii U. My guess is they will see what Sony and Microsoft will do before completely finalizing hardware.

You do know Skylanders generated 2.3 billion in it's first 2 years?

Think about this for a second. To generate 1 billion in revenue, not even talking about profit, Nintendo would have to sell over 75m Amiibos. In one year. That would require every single WiiU owner to buy 10 Amiibos each. Does that make any sense to you? 

You expect them to sell 66 million amiibo's a year? Ok.

I doubt it, but I haven't seen anything about amiibo sales so can't really say. But I sincerely doubt Amiibo's will sell twice as much as GTA5 every single year.