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I don't think Nintendo realized how little Wii owners knew about gaming and console cycles. They got millions of people into gaming who never really gamed before, why would they have any clue about anything. I remember talking to a person who loved their Wii (and never had a game console before), when I asked why she didn't get a Wii U she said she thought it was the same thing with a screen controller and she liked motion control better lol.

Wii U branding was a complete market testing fail. The millions of casual gamers that got into consoles for the first time with Wii had no idea that Wii U was any different aside from the controller. Nintendo really needed to use a number to clarify it was the next version ala iPhone in this case.