@jasonleeson: I don't think they'll drop out of the console race in the next 5 years. They'll still be making hardware, Nintendo has a ton of cash on hand to have 2 or 3 Wii U type mistakes. The 3DS is keeping them afloat and the Wii U could potentially turn a profit this time next year.
Though, it's obvious there are a lot of problems with the Wii U.
The GamePad is a harder sell to the average person than the Wii Remote was. The staple Mario, Zelda, Pokemon, Donkey Kong, etc titles will not be enough to push momentum in the long run in my opinion - they'll need to step outside their comfort zone. Mario Kart 8 really needs to come out this holiday instead of Spring 2014, that's definitely a system seller. The messaging and branding for Wii U has been atrocious. The price really needs to be cut, $349.99 for a Wii U versus a PS4 at $399.99 is a hard sell.
I bought a Wii U at launch and I've supported many third party titles for it, but I've ultimately sold all of them except one. Now I only own 3 games for it - New Super Mario Bros. U + New Super Luigi U, Nintendo Land and Sonic and All-Star Racing Transformed. Nintendo left too big of a gap between first party released and it's hurt them severely. Though, the way they've set up the Wii U release schedule, there's a first party title every month from August till December and that will likely be the same for the first half of 2014.
I'm not expecting Nintendo to turn the Wii U around like the 3DS though, I think they'll gain momentum but definitely not as much as the 3DS has over the last few years.
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I think Nintendo is doing great with the 3DS. It has quality software from a first and third party standpoint, has some great Virtual Console titles and eShop indie titles. With Pokemon X & Y coming out in October and A Link Between Worlds coming out in November, the 3DS will become even more profitable during holiday 2013. It's already a really successful product, even if it likely won't reach the success of the DS.
It's kind of hilarious to see how well the 3DS is doing and how much the Wii U is struggling, they really seem like two different companies are working on each platform.
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