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Words can't describe how bad an idea this would be. Never mind the confusion it would cause, never mind having to redesign the operating system, never mind having to placate those who have already dropped their hard-earned on the more expensive (now redundant) version...... you are talking about releasing the Gamecube 2.0, except this time it is relatively underpowered.

I honestly think anyone who suggests this, and the OP is not the first, hasn't played the Wii U or else doesn't get 'it'. By 'it' I don't mean the Wii U, I mean games, and more broadly, the industry. Nintendo works best when it focuses on uniqueness not trying to go toe to toe with the competition. It's tried that and failed. Why would it work now?

Wii U has gotten off to a poor start, it needs games, they are coming. How about we wait a reasonable amount of time after launch, wait for the games to come and then when all that fails we can consider throwing the baby out with the bathwater. People seem to forget that Nintendo are the only company in the console business that actually turned a profit in the last generation yet somehow they are always the ones who need 'help'. I find it quite odd.