Retailers are "rebalancing" their Wii U inventory to focus largely on the Deluxe 32GB model. According to Nintendo, the $349 bundle has been outselling the more value-oriented $299 system.

At $349 however, the current price of Wii U is dangerously close to the upcoming PS4. Sony recently announced that their next-gen console will launch this year for $399. That doesn't give Nintendo much of an edge. However, Nintendo of America senior director of corporate communications Charlie Scibetta argued that the inclusion of Nintendo Land makes a compelling argument for Wii U.

When asked if Wii U can be competitive priced against the PS4, Scibetta told us: "Well, you do get an included game with our Deluxe 32GB SKU. You automatically have software to enjoy right out of the box."

"We believe our value proposition is right for both our 8GB and 32GB models," he added. "With the software that's coming out between now and 2014, we have the software to power the hardware. We had a good launch, but as we've said before, we've had to hold some titles back from the first half of 2013 to the second half and that was for quality reasons."

Without a price drop, Wii U will be available this holiday for $349 with a line-up that includes Super Mario 3D World and The Legend of Zelda: Wind Waker HD. PS4 will launch for $399 with Killzone: Shadow Fall and Driveclub.