This makes me think of Nintendo's other "failure and a joke" console---the Virtual Boy.
It's interesting how Nintendo was so eager to cancel the Virtual Boy...but how elusive they went about it. One day in early 1996 they just stopped shipping consoles and cancelled all game development. But, they never admitted it publicly.
At E3 1996 Nintendo said they would "continue to support" Virtual Boy, but only showed off two games that were cancelled quickly after E3 and never released.
In Nintendo's 1996 Annual Report, they bragged about the SNES, Game Boy and N64, but they never even mentioned the Virtual Boy's cancellation. The only notification Nintendo ever gave in their annual report was the following:
That's all they ever said. It wasn't "We are going to discontinue Virtual Boy production." It was just "Sales didn't meet expectations," then a swift, silent cancellation.
It took fan letters to Nintendo to determine the official status of the system. Here's a response from Nintendo of America (early 1996, pre-E3):
I wonder if Nintendo has the balls to just abruptly, silently discontinue the Wii U like they did with the Virtual Boy so long ago. I guess circumstances might be different because of the ubiquitousness of the Internet and the exposure the console has already.
But if the console really is such a horrible failure that can't be recouped, I wonder if it could be a possibility. Gamers still purchased the Game Boy and Nintendo 64 despite getting burned with the Virtual Boy. It was just a blip on the radar.