What If Wii U Was a Full-On Generational Leap?

[Soundwave]

A 1.5 TFLOP GPU capable of running Unreal Engine 4 no sweat (which is at least a 6 fold increase over the 360) would not mean the system has to be $500+.

A 28 nm GPU in that range w/2GB GDDR5 RAM would probably run Nintendo about $100 at cost. Lets say it's a customized 7850 GPU. 

Then factor in another $50-$60 for the quad-core CPU. $30 for the motherboard. $20-$30 for the disc drive. $30 more for misc parts (flash memory, WiFi, etc.).

I think you could probably it so the $349.99 SKU was sold at cost/slight loss and the $399.99 SKU was sold for a slight profit from day 1.