Will Wii U be able to compete in this generation?

It's interesting to come back to this thread a year later and like @Damien Lee said, see that the Wii U just hasn't performed as it should. You can only ride Mario, Zelda and Metroid so far before gamers demand more from a "next-gen" console.

Looking back, Nintendo has had a few near miss. Going with cartridges instead of discs for the Nintendo 64, releasing the GameCube with little baby discs, releasing an under-powered Wii when everyone else was releasing HD graphics, etc. These things ended up working out for them, but it really could have been disastrous a lot earlier on.

It's really too bad, but if there's one thing that Nintendo should learn from this now. I feel like they dodged a bullet with the success of the Wii, but the failure of the Wii U should hopefully open their eyes.
I think that's kind of the problem with Nintendo is ever since the Nintendo 64 they've always had one fatal flaw with their console. I think the problem is that they're still riding off their mentality they had with the Wii which was to not compete directly with PlayStation and Xbox and go after another audience all together. However, while they still have their loyal fan base on their side, like many have said before me the large majority of the audience they went after last generation simply doesn't care about them anymore and has moved on to other things. That's why I think this has to be the end of the gimmicks and they need to finally make a console that's going to directly compete with the other two. I think the GameCube had minimal gimmicks but it still had a couple, such as not utilizing online, the smaller disc format, the funky controller, and adorable console design (which I love, by the way) but that was the last somewhat standard console they ever made.