Making the WiiU more powerful would hurt it's sales even more. They could have the most powerful system out there, 3rd parties will never give it the love it deserves because Nintendo systems sell mainly Nintendo games.
Without massive 3rd party support, the core market will not adopt it in sufficient numbers. Even if they had the entire core market, chasing that market is a fool's gambit. It's self-destructing with cost of development > profits for anything but the biggest games.
Worse, a higher price would hurt their sales with the casual and semi-core crowd. This is the money crowd.
As is, WiiU's biggest problem isn't 360 or PS3, it's iPads and Android tablets. More little kids (and lots more adults) wanting an ipad than a WiiU. It goes like this iPad>>Android Tablet>>>WiiU>>360>PS3.
WiiU's problem is compared to an iPad, despite being cheaper, it's too limited and the games too expensive. If they should have spent more money anywhere, it would have been in making the Gamepad a true tablet with Android (iOS or Window RT not likely options). If people could play Android AND Nintendo games with WiiU - those 8gb units would be scarcer than watermelons in the desert. Especially if they could travel anywhere with the gamepad like a real tablet.
MS will also be chasing the casual/semi-core crowd like crazy with it's next system but much more aggressively than Nintendo (man, that DOES sound wierd). Sony? I don't know what the f--- Sony is doing. Determined to go out of business from the looks of PS4 so far.







