Wasn't the 3DS in a pretty dire situation in it's first year of release as well? Aside from the fact that Nintendo was selling them at a profit for $250, it seemed pretty grim at the time to see Nintendo drop the price so soon after launch. At the time there really didn't seem to be much on the horizon for that platform either, but now (assuming they can't turn things around with the Wii-U) it may be the product that keeps them trucking along in the immediate future.
While I doubt the Wii-U will achieve the mainstream success of it's predecessor, saying it is "dead" when the system hasn't even been on shelves for an entire calender year seems beyond ridiculous. Nintendo can scale their output appropriately to manage losses in the meantime while they develop software, and work on ways to cut production costs. It might not be a Wii-Like success, but it most certainly has the potential to achieve at least Gamecube level sales figures.
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