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via Gaygamer.net:

Miyamoto

Well, Apparently Nintendo wanted the Wii to be less than $100.

“If we hadn’t used NAND flash memory and other pricey parts, we might have succeeded,” he added.

At first Nintendo “didn’t think it was possible to build a powerful machine for less than 50,000 Yen” (330 Euro), and there were concerns about power consumption, cooling systems and boot-up time.

In the end, “We had to compromise on graphics and give up on a powerful chip,” Miyamoto agreed.

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-Bastardizer- Video Gaming Blog Live from Panama » Blog Archive » Miyamoto: Nintendo Wanted Wii To Cost Less Than $100