Nintendo is worried that gamers may refrain from buying a Wii U at launch because they expect a price drop.
The concern, Nintendo boss Satoru Iwata said in a chat with investors, is that the recently announced 3DS price drop – only a few months after launch – will cause gamers to think twice when the Wii U launches next year.
"With regard to the influence on the Wii U, what we have to take most seriously is that the price markdown could damage the trust of the consumers who bought the Nintendo 3DS just after the launch," Iwata said.
"I feel greatly accountable for it. Our decision of the price markdown this time has a side effect that, at the launch of the Wii U, people may feel that the price might drop in the near future if they wait.
"Nevertheless, we have decided to cut down the price of the Nintendo 3DS as we consider it as a necessary decision now."
Last week Nintendo announced a huge 3DS price-cut. In the UK it'll amount to around a third off.
Nintendo said it took the decision so it "will be able to create momentum for Nintendo 3DS and accelerate its market penetration toward the year-end sales season, when the line-up for the applicable software shall be enriched".
Now, Nintendo has set about rebuilding the trust it established with those who bought the 3DS at launch – and those it expects are considering picking up the Wii U at launch.
"What we will be able to do to recover the consumers' trust before the launch of the Wii U is very important to us," Iwata continued.
"Since the Wii U we showed you at the E3 show in June was still in the development phase without very specific proposals on the software titles, we are going to announce the release date and the price next year when we are able to explain the specific proposals. Anyway, the biggest influence is on our consumers' trust, I think."