OK, you're entitled to your opinion, I guess. For me, it seems like there is good reason to doubt, considering that the WiiU is selling even worse than the Gamecube, is falling off faster, and is running against stiffer competition.
Historically Nintendo has sold consoles off their first party titles. They have released a total of 1 so far. Judging their sales off 1 title is probably a bit premature.
Circling back to Nintendo realizing how much harder HD development is. I think the WiiU will pick up once Nintendo tunes its development process for HD and gets some titles out.
Except that when Nintendo does so, MS and Sony will have "super-HD" titles to show off. It's the Wii all over again, with 10 years backward hardware. Nintendo can't win this fight without innovative concepts, and the WiiU's one if clearly a failure : it does not appeal to gamers or casual gamers. Their Nintendolands is not a Wii Sports. So what you have left is nothing but a Gamecube, but probably even worse than that. The Gamecube was more or less at the same level as the rest of the competition at the time in terms of power, now Nintendo will have a hard time proving 1st party titles are enough to sell.
