In an interview with CNBC, Iwata said the decision was made within the last three years, and also noted that it wasn’t the first time the company had made such a move.
“In the history of Nintendo there are several such examples," he said. "But when we are launching new hardware, the most important is thing is to sustain the momentum. If introducing new hardware won’t do anything to do that, well…"
Nintendo’s most recent hardware release, the third iteration of its DS handheld, has sold over two million units throughout Europe and the US in under two months.
Iwata also said that the company plans to address a recent slowdown of Wii sales by introducing strong new software rather than a console price cut.
"People often talk about the price cut as if it’s an almighty weapon. The fact of the matter is that what a price cut can do is rather limited. … In the long history of video games, at the time of the price cut we see a momentary hike in sales, but usually that can not sustain its momentum and it soon comes down to below the price cut level."