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I think the main problem here is the perception of the device. It looks too much like an addon for the Wii. And it doesn't help that marketing for the Wii U has been utter failure on Nintendo's part. Why not name it Wii 2 or Wii HD.. At least the general public would know its an entirely new console.

Then there's the advertising.. I mean who the hell would want to buy one after watching this -