Many people are creating threads about things such as Nintendo going third party and whatnot. However, I think some people are missing the obvious reasons as to why they are not doing as well as people hoped.
1) Lack of Third party support
This may be the most obvious sign for Nintendo's current failures. While AAA titles are important to a console, so are third parties. Not everyone wants to buy a Wii U and PC just to play each of their respective games. Games such as Fifa, 2k series, GTA, Call of Duty, Fallout, and much more can each generate millions of sales for each console. Nintendo is missing out on a lot by ignoring these companies.
2) Hardware limitations
While a lot of people support Backwards compatibility, it really takes a toll on the power of Nintendo's gadgets. Look at the Wii U for instance. It couldn't even run project cars properly(the company ended up cancelling it for the Wii U). Sure, it may be nice to play the games from your previous generation, but I think it holds back the potential for the future. Since Nintendo is making the NX, I am sure they'll go with an x86 architecture. If they make BC for the Wii U, it will ruin many chances for the NX to shine.
3) droughts
The amount of droughts for game releases is not acceptable for a company such as Nintendo. Yes, they release many Eshop games. However, do people actually wait for the indie games Nintendo typically releases for the Eshop only? Perhaps more fluidity in Nintendo's schedule. Perhaps. I may be wrong though.
4) Unwanted games
Who wanted Animal Crossing for the Wii U? Just kidding. Instead, you got a game that uses Amiibos.
I think the unwanted games such as AC Amiibo Party, Mario Ultra Smash, and so on are causing the decline in interest for Nintendo. It's common sense that games generate cash. If you make knockoff games and charge $60, I'm quite sure that isn't helping anyone.
5) Visuals
This can be put with hardware limitations, but I think it's ridiculous for the visuals on Nintendo's handheld. 240p is not acceptable anymore. While they were capable of making many of their games still look fine, I think increasing the resolution to 720(or at least something better) will help Nintendo's handheld games look better.
6) pricing
The 3DS was released at #$250, and the Wii U was either $300 or $400(depends if you wanted the 8 or 32GB set). Perhaps Nintendo will have a great start if they don't make such high priced releases. Look at how well the 3DS did once it was lowered to $180/200. If Nintendo doesn't make that same mistake, they can have a decent amount of customers in the beginning of next generation.
7) Amiibos
I think they've taken Amiibos too far. The fact that games are released just for Amiibos makes me wonder if Nintendo has gotten over their head. They seemed fine as DLC goodies. However, it seems as though Nintendo really wants to sell their amiibos(they're really feeling it!).
Conclusion: Nintendo can easily fix their mistakes and aim for a successful future. All it involves is some tweaks to the way they work, with 3rd party support potentially being the biggest.
What I do appreciate for Nintendo is their entrance to the world of DLC. They did great creating DLC for games such as Mario kart and Smash. hopefully they don't abuse DLC and keep it the way it is.
(Disagree with anything? Comment then. I'm open for all comments)
-----------------------------------------------------------------------------------
12/22/2016- Made a bet with Ganoncrotch that the first 6 months of 2017 will be worse than 2016. A poll will be made to determine the winner. Loser has to take a picture of them imitating their profile picture.
Currently Online 
