Nintendo CEO Satoru Iwata has admitted that the company is to blame for poor Wii U sales.
According to the CEO, the company has failed to communicate the console's appeal due to a "relaxed" marketing effort.
"The consumers today still cannot understand what's so good and unique about the Wii U," Iwata told CNBC.
"Because we're always trying to be unique, it takes some energies on our side to [make] people understand the real attractions about whatever we are doing."
Iwata went further, admitting that Nintendo has so far failed to release a title that will sell the console to consumers.
"We have been unsuccessful in coming up with one single software with which people can understand, 'OK, this is really different," he continued.
"As long as people have hands-on [experience], they can appreciate the value of the Wii U, but because there's not software that's simple and obvious for people as 'Wii Sports' for the Wii, potential consumers do not feel like trying the Wii U.
"Our challenge today is with the software lineup we are introducing now, we have to encourage [people] to experience the Wii U in the first place."
Nintendo America boss Reggie Fils-Aime said yesterday that pricing for the PS4 and Xbox One "puts no pressure" on the Wii U at all, echoing Iwata's sentiment that the console s a different proposition to Sony and Microsoft's next-gen products.
During an E3 analyst briefing, Iwata blamed the lack of new Wii U titles in 2013 on the publisher's desire to release as polished a final product as possible.
Nintendo missed its annual net profit target by 50 per cent in the last fiscal year. Nintendo forecasts net sales of 920 billion yen (US$9.2b) for the current fiscal year ending March 2014.