Famous Nintendo designer and EAD general manager Shigeru Miyamoto admitted that Wii U won't be may not "necessarily dramatically outperform the systems that are out now."
Miyamoto went on to admit that the decision to include a high definition touch screen in each of the console's controllers "maybe to a certain degree somewhat reckless" from an economic point of view. Each Wii U SKU ships with 2 controllers bundled, raising its cost significantly to the point that the Nintendo can't use a powerful CPU by today's standards without making Wii U too expensive for most consumers.
"We're very sensitive to pricing because people have generally only a certain amount of their spending that they'll devote to entertainment," he explained. "And if you're talking about parents buying something for kids, there are certain price points where parents may be willing to or not willing to purchase a certain product."
"But at the same time, you have these technological advances, and you have the needs of being able to take advantage of that technology, and those result in increasing costs and things like that," he added.
Nintendo didn't reveal Wii U's retail price yet, but its president Satoru Iwata has stated that it would cost more than the Wii's price of ¥20,000 ($250).