You will perform the system update on this yourself before you gift this to someone. If the system isn't properly updated then games will not work. This is what is inflicting pain on a lot of people this Christmas--they gave their kids Wii-Us and right out of the box the games are not playable. Nintendo's servers went down on Christmas (due to volume). Now the parents who bought these as presents for their kids are experiencing Wii-U: The Wrath of John/Ron/Sean/Juan/Don etc.
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