They went from the super expensive console that had no games to actually almost catching up to microsoft, having tons of content, the most exclusive content (most of which is high quality), and they went from super expensive to "best value" with built in wifi, bluray player, large harddrive, free online gaming, and so on for a price that was very competitive with the xbox.
Their sales completely turned around. So yes, your anecdotal evidence is just that...
Hm. They sold (to retailers, which I think is all we have to work with on a global basis) about 8.7m systems in their first full calendar year (2007), about 10.7m in the calendar year after that (2008), 12.4m after that (2009), 14.4m in 2010, and 14.1m in 2011. Mostly year on year improvements, but if their image were
really improved, I still maintain that they wouldn't need to take massive losses nearly every quarter
currently to sell the product. I think that the lion's share of the increase can be explained as due to simply becoming a cheaper product.
(for comparison's sake, contemporary console Xbox 360's first full calendar year was 8.9m, and its most recent full calendar year was 14.9m, approximately the same overall increase as for the PS3)
Granted, Sony had to go through tremendous efforts to avoid
further losing consumer interest while their prices were higher than most customers were willing to buy at. They get credit for that, certainly.
I agree. If Nintendo had released Wii U holiday 2011 and 3DS holiday 2010, it's possible the losses could have been averted. Instead, they tried to milk Wii for one more year, when their cycles have traditionally been 5 years. When the Gamecube was tanking, GBA was there to keep them in the black. When 3DS had its rocky start, Wii was simply not up to the task.
What if they did it the other way? My impression is that the DS still had a decent amount of life left in it when its successor was announced, and the Wii did not. They could have taken resources from the teams making DS games to help work on the Wii U, especially since the DS actually had a healthy third party ecosystem, and then they'd have at least a little bit of resource left over to work on Wii games.
edit: That sad guy is very bouncy. What, is there an earthquake going on?