It occurs to me that a challenge Nintendo faces is that they can no longer be the go-to console for children. Why? Because there are now too many parents who are gamers, so they buy a console for themselves and then buy games for children on it instead of buying a console for their children. The problem is composed by hand-me-down (children get last gen consoles when parents buy the new gen) and generation overlaps (last gen consoles being cheaper, well supported and having a number of cheap games available new or 2nd hand).
The Wii managed to escape that conundrum by becoming the console for the non-gamers (and their children), but sadly it did not work too well has a trojan horse to create new gamers or even convince their public of non-gamers to upgrade to the Wii-U.
It's clear that the communication on the Wii-U was a total clusterfuck (they tried to talk to the non-gamer by focusing on the controller, but all it did is create confusion: people thought it was a new peripheral for the Wii) and that its design is flawed, but even without these problems I am not sure there still is a place on the market for a Nintendo console. In Japan their brand still carries them, but outside Japan it feels (strong research right there!) like most of their sales come from hyper-gamers that are ok to buy the console (on top of another and/or a gaming PC) just for the big Nintendo IPs and the occasional good 3rd party exclusive.
I am sure Nintendo shareholders are displeased and Nintendo executives are restless, but I am not sure what they will do next... Stop making non-handheld hardware and release games on the other consoles? Remain in their niche and make it viable? Buy the Xbox division? Be very aggressive with the price/power ratio of their next console and cut the licensing fees and barrier of entry to a minimum to attract indies and 3rd parties?