Both the Wii U and Vita have needed price cuts for months. Both companies have been reluctant to do so for their own reasons, but by now the evidence is too big to ignore for both companies.
Nintendo just launched at too high a price without the kind of software support needed to spur sales. Their first party offerings were nothing special and the only third party that put any effort into quality software for the system (Ubisoft) is abandoning it. Nintendo doesn't want to admit that they offered a product that didn't have a great hook to it at a price that made it uncompetitive against the 360 and PS3, but once the new systems get unveiled, the Wii U is going to look much more boring and overpriced that it does now. They could get away with a $50 cut and an Ambassador Program if the new consoles are too pricey, but if even one of the new consoles can hit $400 at launch, the Wii U has got to cut $100. It can't compete well with the current consoles, let alone the new ones.
The Vita, as a concept, is sound. There are plenty of people who would want to play console-style games on the go while also being able to play smaller games with superior controls to that of smartphones. However, due to the execution of gathering support for the system and keeping it at too high of a price for too long, the Vita is in a position where most companies appear to be very wary of supporting it. From seeing the explosion of sales from one unadvertised sale on one website during Black Friday and with anecdotal evidence, I believe that there is a sizable audience (not 3DS size, but much bigger than it has now) that would be interested in this kind of device. The problem is, the software situation has been stagnant enough for too long that it would take a lot of effort and a lot of time to get sufficient third party support going. Also, in Japan, the Vita is still a victim of the PSP's success, and not enough has been done to turn it around there. The Vita will still be the most technically impressive handheld gaming platform for some time, and I do see a path to rejuvenating the Vita that starts with a $75 price cut, cheaper memory, a few first party exclusives, and funding some cheaper $20 download only exclusives, but given Sony's management of the Vita so far, it probably won't recover.
DMC4 was the best selling game in the franchise.
The series was not failing and this asinine rewriting of history that DMC4 left the franchise dead is getting REALLY old.
When the Call of Duty series starts declining in popularity (many say that decline has already started), the best-selling game in the franchise, or the apex of the franchise, will be a dull and uninspired revisiting of the franchises' past successes with little new to show for it (which is exactly what DMC4 was). There is plenty of evidence that shows that Black Ops 2 is selling slower than Modern Warfare 3, which is the best selling game in the franchise. MW3 is largely regarded,quality-wise, as a dud of a follow up to one of the biggest games of all time, and it may very well still sell more than Black Ops 2, which is a superior product to MW3 in every way.
The point is, just because a game was the best selling in the series doesn't mean that it was up to people's expectations on quality for them to keep going with the series. Or that the poorer sales of a sequel are entirely the fault of the quality of the sequel.
All I'll say about a Capcom-developed successor to DMC4 is that given the sales success of 4, if they had the means or inspiration to make a worthy sequel like what DMC3 was, they would've done it internally. They had to have had a real good reason to not continue one of their most successful recent franchises internally and they wouldn't have farmed it out to an outside developer with a mixed portfolio if they could've avoided it.
Also, entirely leaving aside the perceived quality of DMC4 and DmC, there are several market reasons why DmC would perform worse than DMC4.
-DMC4 released before a global financial crisis that damaged the finances of millions of gamers worldwide and led to lower spending on full $60 games, especially ones that only have single player.
-DMC4 benefited from the hype of being the first in the series on a new generation of consoles. DmC was released at the tail end of a record long generation in a time when console game sales as a whole have been down significantly. (Charting on the NPD top 10 at under 200k was quite rare a couple years ago, let alone hitting #6)
-DMC4 benefited from being in an active franchise. DMC4 released just a few years after 3, while there was nearly six years in between 4 and DmC. Interest in a franchise wanes over time.
-DMC4 had consistently good prerelease presentation from Capcom that showed the best parts of the game off and was well received by fans. DmC was presented sporadically before release, showed off little of what the game excelled at, and was received with outright hatred by many vocal fans that persists to this day.
-Hiring a new developer to work on a reboot was a lot more uncertain than having the people who made the last one work on a direct sequel. This leads to more extreme reactions prerelease and hesitance at the potential point of purchase.
Now I know that a lot of hardcore DMC fans (a good chunk of which have been actively rooting for the reboot to fail) like to claim that the failure of DmC to hit the sales heights of DMC4 is ENTIRELY due to DmC being a terrible game, but that claim doesn't have much basis in reality when you look at the state of the industry at large.