Nintendo is offering "insane incentives" to encourage publishers to release their games on the Wii U eShop alongside boxed counterparts.
"They're offering insane incentives for publishers to sell retail games as downloads on the console," the source explained. "You'd be stupid not to take advantage of it and go retail box-only."
According to the source, Nintendo has learned from mistakes made on WiiWare and is positioning itself to take on Sony and Microsoft with its new strategy.
"The new platform is perfect for indie devs, it's a whole different ball game than WiiWare. They've learned a lot from that mess," he said.
"It's just a much bigger revenue cut that you'd get selling it on any other platform at the moment, plus promotions on the online store. If they [Nintendo] pull it off and it gains traction, it'll press the other guys [Microsoft and Sony] to give more of the revenue to the publishers. It's very good for us who make games. You'll be making a lot more per unit sold digitally than at retail with the Wii U. And from day one."
Nintendo of America VP of sales and marketing Scott Moffitt has said Wii U's appeal is 'confusing relative to Wii'.