Industry analyst Michael Pachter doesn't expect Wii U to cost over $399.99 when it launches this year.
He told IndustryGamers that $249.99 would be a more competitive price if Nintendo wants to go toe-to-toe with PS3 and Xbox 360.
"It would surprise me a lot if the Wii U cost more than $399.99, and I think that the sweet spot is $249.99," Pachter said. "Pricing really depends upon where the other console bundles (PS3 with Move and 360 with Kinect) are priced at the time the Wii U launches, because people who don't yet have a console are likely going to choose among the three offerings, and the biggest driver in the purchase decision is usually price.
Pachter also reiterated his belief that Nintendo's leaving it too late to launch its Wii successor.
"I have repeatedly said I thought the next generation Wii should come out in 2009, then 2010, and when it was clear that it wasn't happening, have repeatedly said that a later launch was too late, as it will come too close to next generation launches from the other console manufacturers."
Nintendo isn't ready to open up much about its Wii U pricing strategy yet, but president Satoru Iwata has said "this is not going to be cheap," also hinting that the console will likely cost more than 20,000 yen ($250) in Japan upon release.