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magos2k7 said:

I think if Nintendo actually made the Wii U four times as powerful, they would have charged significantly more, at least $499. They always try to make a profit on their machines if possible. With their mechanism for how they bring a machine to market, it would have been too costly and nobody would have bought it. 

Well the thing is they are selling it just under cost of production, so loosing money for the first time. So if it was 4x more pwoerful it would be a huge loss on hardware for them and their business model woudl never allow for that, not sure about the stakeholders though.