I could be wrong but I expect Nintendo is planning on releasing the Wii U with a game for $299 but may need to increase the price to $349 if the exchange rate changes too much. To me it sounds like Nintendo is taking the same basic approach with the Wii U hardware that they took with the Gamecube and are taking outdated, inexpensive and energy efficient hardware and through optimization and customization producing hardware that is high performance and affordable.
The controller will be more expensive, but I think people over-estimate the cost.Since it is just a dummy-device I don't think it will be much more complicated/expensive than taking a XBox 360/PS3 controller and adding a touch-screen to it; while this will make the controller significantly more expensive I highly doubt it will make it twice as expensive.
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