To be fair, they do generally know what their doing.
It would seem that Nintendo balance their bounds forward with equally impressive steps backwards. Wii U sales have been going up recently, if you remember I even said we should stop calling the Wii U a struggling console, which is true. But despite the need for better hardware, Nintendo are sticking to their guns and not planning to release a successor until the Wii U has been brought to its limits.
Speaking on the matter, Reggie “my-body-is-ready” Fils-Aime said, “Our mentality is, fairly soon after we launch new hardware, we already begin thinking about what’s next. That’s an ongoing process for us. In the end, what galvanizes us to move is when our developers have a great gaming experience that can’t be done on the current platform. We’re not there yet on the Wii U.”
I’m not too sure what to make of this to be honest, it strikes me as odd that they would intentionally limit themselves in regards to moving forward technologically.