$349 for a Wii U, $399 for a PS4, or $499 for an Xbox One. That's the question that many gamers will be asking themselves this holiday season, when the next generation of console wars officially begins. Given the Wii U's last-generation tech, and current lack of worthwhile games, that price is already a tough sell. With new, more powerful systems on the horizon, with comparable software line-ups, the Wii U is going to struggle even more to compete.
The answer may have been a price drop on Wii U hardware, but according to Nintendo, they're still selling the Wii U at a loss, making a price drop very doubtful and difficult for a company already facing financial woes. Lowering the price further at this point would increase the size of that loss, further hurting Nintendo's bottom line.
Simply put, the Wii U needs a price drop to remain competetive and sell in a market that's about to get a lot tougher for Nintendo's home console, but doing so would put Nintendo at more of a loss. As consumers will have to ask themselves which console is the best investment for them, Nintendo will have to ask themselves if taking a larger loss and lowering the price to move more consoles will be more profitable long-term investment.