First of all I think this writer is failing to mention a little game called Monster Hunter that is just HUGE in Japan and is one of the sole reasons the PSP was such a success there, and that games are still being made for it. It's successor the Vita might not have unrivaled exclusive Monster Hunter like the PSP had (the 3DS has it now)... but it still has the BEST portable version of MH. And let's put the numbers in perspective...
3DS LL: 29,716 [DOWN] 3,556 (10.69%)
Vita: 20,776 [DOWN] 10,495 (33.56%)
3DS: 14,506 [DOWN] 2,934 (16.82%)
PS3: 11,683 [DOWN] 871 (6.94%)
Wii U: 8,251 [UP] 1,191 (16.87%)
PSP: 5,768 [DOWN] 724 (11.15%)
Wii: 1,334 [DOWN] 4 (0.30%)
Xbox 360: 313 [DOWN] 17 (5.15%)
That's right. The Wii (2006) and the PSP (2004) are both outpacing the 360 by factors of 4 and 18 respectively. That is not 313,000 units, that is 313 in all of Japan from July 1 - 7. Infact even as of last year the PS2 (2000) was fighting for last place before it got discontinued early this year. Japan is a different market and it seems to mean less and less every year (unfortunately for people who like Japanese made games).
Now Nintendo has its problems and Dragon Quest X on the WiiU did not give the console the sales boost they were hoping for. I think there strategy is very messed up at this point and most people I talked to last holiday season thought that the controller was just an add-on the the Wii. If Nintendo wants to make the WiiU huge I got two words for them: Pokemon MMORPG. I haven't been into a Pokemon game since Gold and Silver on the Gameboy color... but if they can pull a Pokemon MMORPG the WiiU would fly off the shelves... and I would be pushing over any 8 year old that got in my way to grab mine.
Or just team up with Apple/Google and make any game that is SNES or older for sale on APP stores... use that money to fund new games... Close to a Billion devices with Android or iOS is a great instant install base. Just my two cents.