Nintendo, Sony and Microsoft all are working on next generation gaming consoles. However, Nintendo will be first to launch the Wii U by the end this year. The Japanese electronics giant can follow the same approach as Google did with the Nexus 7 tablet - affordable price - to make Wii U a big hit. And reportedly, the gaming console will cost under $400.

After a conference call with UK retailers, folks at WiiURelease claimed that Nintendo's next generation gaming console will cost no more than £250. The site claims that the possibility of this price tag to be real is "99% likely". £250 UK price tag indicates sub-$400 price in the U.S.

This is a sigh of relief for Nintendo fanboys against earlier reports that suggest that the final price of Wii U can go as high as $600. However, it is still not a great sigh of relief when considering the $250 price tag of the original Wii.

The big reason behind the hefty price tag is two system architecture of the upcoming gaming console. Wii U package contains a traditional box that you plug in the TV and a touchscreen controller that can act as a gaming console on its own.

According to Digital Spy, the Wii U will have a relatively slower processor than current generation gaming consoles - Xbox 360 and PS3.

"I think maybe the game is coming along smoother than most people would think, as far as the look of the game. As far as graphical processing and such, it's not much of an issue. But as far as the CPU goes, the clock is kinda low," Tekken series producer Katsuhiro Harada told Digital Spy. "I guess they're trying to keep power consumption down so we have to come up with creative ways to get around that and that's taking a little bit of time."

Nintendo Wii sales are declining and company has posted its first annual loss. All the hopes for Nintendo are set on the Wii U. Nintendo has confirmed to bring software innovation to the console.

We are just a few months away from the official release and still there is no official price point for Nintendo's upcoming gaming console. If this report is to be believed, the Wii U will cost somewhere between $350-400.