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Price is not the problem. I remember that at some point of Gamecube's life its price was 99'99... and we all know how much that helped.

The problem (at least where I live, Spain) is that many people who normally buys Nintendo systems (children, families... thats the huge core) still don't know the console actually exists.

Nintendo has done an awful job in everything related to advertising Wii U. And they will feel the consequences until they change that. But fun fact: Iwata wants to spend even less money in advertising. So yeah...