I would say that unless Nintendo takes drastic measures, the Wii U is already dead. Even with price cut and revamped marketing strategy I am unsure of what kind of results they could achieve. As somebody here said, they need to attract the kids, families, be again the machine to buy to play with your kids and to have the kids playing with their friends.
This failure doesn't bode well for the other two competitors as well. The console market seems to be in a transition phase.
We are getting a lot of computational power for cheap these days, that means that my cellphone, my tablet, my smart tv can run games, perhaps simple and stupid games compared to AAA titles, but still they compete for 1 resource : the free time of people.
Moreover the cash available for high-tech games/entertaining is now also destined to smartphones and tablets .... which means that there is probably less cash available for an older kind of gadget/ device : consoles.
Nowadays you have to have a smartphone pretty much...., and most people (at least among the audience interested in high tech stuff) even change it quite often even : all money and resources not available to consoles.
Actually, looking how things are moving, I would say that an apple tv also console, would have much better chances to have good results than the historical players, in fact apple devices now are getting more and more integrated (thanks to the cloud etc etc)... for many such device would be really tempting .... and it would have the "cool" halo that many apple products have and that the Wii had (as party machine) and that now struggle to recreate.
Of course there still the market of the hardcore gamers that are not satisfied with small little games and want an AAA experience, and these people, us, will be the reason why at least one of the three new consoles will not fail (hopefully they will also understand the need to focus on such audience ), but the bottom line is that the market is now a lot tougher.
Even the rise of Steam is a threat to the new gen consoles actually, especially give that they are set to attack the living room with a Steam box.
I am not even sure whether there is even really space for 3/4 major players any more. Most probably not.
If I were in them I would really start to develop a concrete strategy to be successful in other markets, the emerging markets.
It was just inevitable that all this money flowing into smartphones and tablets, together with the success of the mobile games would have made a dent on the traditional market.... it is just too big, and for the new generations, for many, Angry Birds will be what Mario was for the older around here. When they will ask for a gift it will be Ipad mini or WiiU ...... well .... we know what they are choosing.