You shouldn't have to wait two years for a system to flourish, because a decent amount of 1st party games and 3rd party games should be out within the year to get the system into the market as a contender and find what place they're at.
Remind that Nintendo has always released their system a generation behind MS and Sony in terms of hardware specs. I give Nintendo credit for making a durable system though. Xbox 360 and PS3 were identical to using wet toilet paper. Not only that, but the PS4 hasn't been looking good since they tried to sweep XB1 under the rug with the DRM issues, but that's for another story.
Just from looking at how things have developed for the 3 systems, I'm only impressed with MS because of the fact they've listened to consumers, made their system worth buying, and have a decent lineup when you get the system day one. I AM typically impressed with the lineup that comes from Nintendo, but that's just over a year later, and I'm sure that having to cut their system down in prices due to lack of sales (which was their choice for pushing 3DS at that time) doesn't help that much either.
I half agree. However, there's usually some issues from the development side as things shift around - Microsoft revised their box over and over leading up to release, for example, and developers had to work with new builds and pray things didn't break. Since pushing the hardware to perform at its best necessitates understanding and exploiting all the little nuances the hardware has to offer, this meant we're likely on the receiving end of some rather safe plays, technologically, in terms of the launch titles, and some very good titles are going to see some extra development time for that. I suspect both Watch Dogs and Titanfall, for example, had some issue in part with this, and in part with their own internal systems (notably WD's open world and TF's mech-human interactions).
The Wii U is only half having this issue. The real challenge for developers delivering a Wii U exclusive title that could drive system sales is the same thing that drives all killer apps - an incredibly positive gaming experience that could only take place on that system at that time in history. But the hardware is workable enough. I think the idea of shoehorning in the gamepad, which is for all intents a tablet that you get "just cuz," probably accounts for the lack of current killer apps. Some people are willing to do that, even with success - Rayman Legends is a fair example - but the gamepad just doesn't have the same radical air of control scheme revolution that the Wiimote had, so less people are willing.
In terms of good games we're still kind of waiting for some big plays from Nintendo; the best exclusives it's got at present are, by a look, Super Mario 3D World and Wind Waker HD. Many of the other good games are multiplatform (Rayman Legends comes to mind) and most 7th gen hardware could run it too, so Nintendo being a generation behind in specs just let the 360 and PS3 get in on the action in their twilight years. Needless to say third party support has also been incredibly lax for Nintendo of late, so they need to roll out the 300-pound first party gorilla pronto.
I still think the system could turn its fortunes around with some stellar releases - if it markets them better - but at this point it does look ho-hum for early adopters of the system, and that annoys early adopters and puts off late adopters, who will as time goes on find other options. Which they now have. If the big PS4 and Xbone movers do their job Nintendo may lose ground from all but its core crowd and that's gonna tickle.
Another interesting point that I don't feel is getting press is that Nintendo may have shot itself in the foot a tad with its strategy of marketing to casual and non-gamers with the Wii. These same people may as like stick around for the next generation as they might be comfortable playing the games they do enjoy on their perfectly functional Wii systems, and if they find no compelling reason to upgrade, they won't. I feel like this may also be having an effect on the Wii U, but have no data to back up my claim at present, so don't consider it gospel.
And let's be fair here. Both of the new 8th gen players' launch libraries lack lustre. Some initial fun stuff, not much else. Unless the sophomore titles in their series are phenomenal, nobody's going to remember Knack or Ryse three months from now, not even the early adopters, as they'll be drowned out by the more highly anticipated Q1 2014 titles - which will by the way in large part be multiplatform, albeit for everybody not named Nintendo.
Lastly when Microsoft listened to consumers' valid complaints about physical media their response was to neuter their digital platform. I see no reason why both the proposed downloadable, portable, one-to-several sharable libraries could not exist alongside the physical, localized, one-to-one sharable disks in their current configuration. I bet someone's financial department sees it differently, and I bet that financial department is not Microsoft's. And I found the most funny part of the kickback from that fiasco to be how all the media outlets were lamenting the Big Brother aspects the second they released, and then when that changed minds, they immediately lamented the things that could have been, almost in a "careful what you wish for" sense.
I'll be happy to discuss this more if you're in for it, but I'm an hour in on typing this already and I'm sure my sleep deprivation has forced at least some rambling out, so for now I'm cutting it off here.