Unfortunately, that's true. Nintendo is trying to sell a console that is not well suited for multiplatform development in an environment in which going multiplatform is the only viable solution for most third parties. This leaves Nintendo in the cold for the most part. The Wii had the same problem but that was tempered by it's runaway success thanks to some other factors. But this has been going on since the N64. Nintendo has consistently managed to maintain success through people buying its consoles for the 10 to 20 must have exclusives with anything beyond that just gravy. I'm not sure what's changed this time to suddenly make it a problem other than maybe people are just getting wise to the routine and decided "nope, not this time." I want to attribute it to both the console's name and appearance (it looking and sounding too much like a Wii update possibly muddied it's purpose as a next gen console) as well as the terribly uninteresting first 8 months or so of software.

I don't think the Wii U is a lost cause yet but I've never seen Nintendo so unfocused. It was pretty terribly marketed, all things considered, only vaguely trying to ride the coattails of the Wii and iPad's success without a cohesive spirit of its own. In what universe is it a good idea to use ports of last gen games as your highlight? Who's supposed to be amazed that the Wii U has Tekken Tag 2 and Mass Effect 3? Isn't that like if Sega tried to sell the merits of the Genesis by demonstrating an exact replica of Castlevania II? For all the weird decisions of Nintendo past (N64 cartridges, Gamecube discs, controller) they always built a console identity around the machine. I still have no idea what the Wii U's identity is.

They also need to pick their battles. They certainly don't have to match the system specs of the Xbox and Playstation but they do need to stop adamantly rebelling against just about every single advancement that's happened in the last ten years. Basic multimedia functionality, competent online, an indie-friendly publishing environment, etc.