Nintendo's Wii U isn't in the same graphical class as the New Xbox and PS systems. this is the second generation when Nintendo made the conscious decision not to put out equal hardware to their competitors.
In the previous generation the Wii had its gimmick that pushed it's sales and that gimmick coupled with Wii Sports got it into homes. eventually though everybody including Nintendo abandoned the Wii when it outlived its own gimmick. you've never seen a system that's moved almost 100 million units dropped so fast. Nintendo rushed into this next generation for a reason. unfortunately for them the Wii U has no such gimmick or anything to differentiate itself from its competitors. let's be real here nobody cares about that tablet controller and to an extent several developers have weighed in saying they're not porting current gen games over to the Wii U due to that controller. outside of that controller the Wii U is just an outdated system from a hardware standpoint that struggles to fully keep up with hardware from 2005 on some accounts.
this is a virtual no-man's land for Nintendo. Not powerful enough to compare directly to competitors. Not different enough to differentiate themselves from competitors. Cost too much to produce so system sold at a loss. the question is when you remove all those casuals out of the equation that over-inflated the Wii's numbers how many gamers are you left with to buy a system solely for Nintendo's games when the competitor's systems are far superior?
to me its looking like the Wii U will get Dreamcasted. people will adopt the attitude that their money is better spent elsewhere and just skip it. many of the loyal gamers and enthusiasts will wait and buy it on the backend just to play all the games they missed during the generation.
Iwata implies he may resign over poor business performance - NeoGAF
Nintendo has been burning up money for 2 years now. Iwata is about to offer his head on a platter if they can't turn this around.