Total shit storm.
Bad hardware for third parties. Poor third party tools. They forgot to bring first party games again. Gamepad adds $70+ to the system price which limits price cut ability. Gamers in general have not taken to the gamepad. Management completely out of touch with reality of online networks. Slumping Japanese market moving increasingly to mobile devices. Horrible name that confuses users. High price keeping it out of reach from the casual users.
They are in a very tough spot, the Wii U just isn't a good sell to most people right now.