Nintendo's already in a position where they're taking a loss on every Wii U sold. It's a relatively small loss, something in the order of $50-$70, but it's still a loss. Dropping the price by even $50 this holiday would widen that loss to $100 per system. Now, the 3DS also sold at a lost post-price drop, but it was something like $20 a unit, and they made the system profitable by 2012. Without a revision in their approach, either through design or something else, Nintendo will be hard-pressed to push the price down, especially after losing money for two years straight. Can Nintendo take the loss? Absolutely. One has to wonder if Nintendo has the brass to do such a thing to better the install base. Sony and MS went for years on $300+ losses to establish the PS3 and 360, but Nintendo is smaller and fiercely cheap. So, who knows.