It's not news that Nintendo's upcoming Wii U system will not make money for the company right out of the game – that's par for the course for systems these days. However, president Satoru Iwata has explained why.

"...The Wii U hardware will have a negative impact on Nintendo's profits early after the launch because rather than determining a price based on its manufacturing cost, we selected one that consumers would consider to be reasonable," he told investors yesterday when also discussing the company's fiscal outlook. Yesterday, the company downgraded its fiscal forecast for the year.

The Wii U's price was a hotly contested topic before it was announced, with many in the industry speculating on what the company could and could not get away with. We'll see how fine of a balance Nintendo strikes when the launch dust settles and perhaps in a few years (as is customary for some other systems) the Wii U starts to make its money back.