Not quite as bad but you could say the same about Microsoft executives and their original intention for the Xbox One, they muddled that to the point it was hurting compared to a gaming focused hardware console such as PS4.
On the plus side for Microsoft is that they could recover the product sales-expectations with some changes and narrative albeit missing all sales/market targets set by Microsoft.
The Xbox-one at launch with its Kinect and use beyond that of a 'hardcore' console gamer shows the risk of blurring the boundaries and misunderstanding who your core consumers are, question is does Nintendo understand those mistakes.
Cheers
The MS story is still an interesting one. The xbone concept didn't spring out of thin air. If you look at the data on how 80m+ 360 owners use their machine the original pitch is mostly sensible. They 'just' forgot why people, especially the early adopters, buy consoles over other devices in the first place.
I'm not sure what the Nintendo version of data driven decision making looks like. I couldn't think of anything suitability sarcastic given WiiU sales. Damn. [emoji4]
Nintendo being a Japanese company the first assumption would be they actually have any data, with Japan being Japan that actually is a bit of a gamble. Assuming they do they will have about 20 very long meetings with people thinking they are very important sitting there making difficult faces. Half the attending members during this meeting will be asleep, occasionally nodding or saying "hai", because you don't sleep during the night, that's when you work so you can sleep during working hours. Anyway after all those meetings/nap times they will ignore whatever data they have and Mr. Boss will make up something on the spot and they'll go with that because reality will confirm to whatever they decided. Until reality kicks in and they realize they screwed up. Which they'll ignore as well because in Japan people don't take responsibility and people are not held accountable so things just stay as they are.
There is a reason this country's economy hasn't been going anywhere for the past 30 years. They got some brilliant engineers that despite of all the corporate bullshit somehow manage to develop great stuff but that is it. The day those people understand that if they'd speak half decent English they could be making three times as much money working half the hours outside of Japan is the day this country is going to be finished.