I disagree, but whatever. I define hardware success by the ability to keep a business alive, and the PSP didn't. Just like the GC and N64 might have generated revenue for Nintendo, they both did fail their primary role of selling games outside of a few examples.
When a console fails to move software, it is a failure in my book. And this failure gets bigger the more consoles are on the market.
Nintendo will have to do a lot to have the WiiU become that kind of machine. I actually think the WiiU will make Nintendo money, maybe even from day one, but I'm really not so sure if it will become a viable plattform to sell games on.
After this gen, I personally see the cards being dealt anew. I could see Sony actually making a huge comeback next gen. They really have nothing to lose, and if they manage to bring a compelling and reasonably priced PS4 to the market I know that many gamers would be more than willing to jump on.