The Wii U hasn't been selling to expectations. However, Nintendo has been reluctant to drop the price of the console. According to the president of Nintendo, Satoru Iwata, the company is well aware that the console's poor sales aren't due to hardware price. He points to the Wii U's Basic model, which is about $100 cheaper, as evidence.
"If the price is actually an issue [with Wii U], then there is some contradiction between the current sales balance between the Basic and Premium versions of the Wii U," Iwata said.
In fact, according to the president, the Basic version of the Wii U has been selling worse than the Premium version.
Iwata remains firm against calls for the Wii U's price drop despite the fact that the console's only sold 160,000 units worldwide in the last three months. He attributes the poor sales to software. "I understand that the real issue is the lack of software, and the only solution is to provide the mass-market with a number of quality software titles," he said.
Of course, this is easier said than done. But it's nice to see Iwata speaking frankly about Nintendo's rather unfortunate situation.