However, I think Wii U will ultimately be fine. Nintendo will release the usual suspects and the console will be profitable which Nintendo can live with even if every company aspires for more than the bare minimum. It's like being a lower seeded team. They're not terrible enough to sell the team, but they're (most likely) not good enough for a championship.
Alright, let's continue that analogy (especially since I currently
AM a fan of a lower-seeded team right now)

: : When you're a fan of a lower-seeded team, you have certain expectations. You acknowledge that your team is most likely going to lose the vast majority of their games, but in exchange for that sacrifice your head office is also building for the future. They're freeing up bad contracts for cap room to recruit upcoming big free agents; they're giving the younger raw talent valuable experience; and they have a clear plan for building a stronger future.
Nintendo has done none of that. They're a weak team currently at the bottom of their division and increasingly getting crushed by the Top 2 Seeds, but they haven't shown a clear sign that they're building for the future. Instead, they're staying the course: executing the same plays with decreasingly talented players, expecting that they will always be successful because they won games in the past. They aren't making the moves necessary to build the strong foundation of a future contender. Worse yet, the team's currently handicapped by at least half their salary cap and over half the team currently being funneled away to their successful D-League affiliate.
On top of that, they're playing their Star Center (Retro) as a Shooting Guard. Sure sometimes they can still have a career night, but as they already
have several legitimate Shooting Guards back on the bench, it's a waste of talent and a sign of incompetent coaching. As already mentioned, it doesn't help as well that their playbook is nearly 30 years old and every team in the league knows
exactly what they're going to run any given night. It likewise doesn't help that many of those plays involve running out the clock and then trying to take a shot at the buzzer, only to watch the vast majority of them clank off the rim. Every once in a while, the team can surprise and turn out a very solid performance, but the vast majority of the time they send the fans home disappointed.
Nintendo needs to find some fresh new talent, give that talent the experience to truly reach their potential, hire a new coach that knows how to better assign their talent, and write a new playbook. Until they do, they will continue to not only eternally be a lottery team, but one that sells its picks for cash so it can never improve (ala the 2000s-era Phoenix Suns).