Indeed, if you consider it has all the components of all high end android cellphones, how much are high end smart phones off contract? $500? $600?
Since they aren't going to get the same licensing fee's that MS/Sony/Nintendo are going to get off the software, and aren't in bed with any telco's since this doesn't seem to be a phone at the same time, I doubt they'll sell it at a loss.
They *may* get some money from the "the way it's meant to be played" certification, but given the mobile market has much smaller per unit revenue, I can't see that making up much difference. There is other long tail profit to be made from people buying related nvidia hardware such as videocards to get the PC streaming support, but I don't think they can rely on that making up for a huge loss leader.
In the end, I actually like the design, maybe not as thin as I'd like (DS fits in pocket nicely), but the flip screen actually makes the angle a lot more comfortable for gaming in different situations as opposed to devices that have buttons parallel to the screen (PSP/WiiU/Vita).
Battery life seems amazing, graphical power seems pretty good for a portable. Being android, obviously this marketplace gets leap frogged every generation (6-12mos), so this isn't really like a console where you invest and know you're safe for performance for 5-6 years... It'll play current top end android experiences, but in 3 years?
I wish it had a cellphone option, not so I could taco talk, but so I could use a bluTooth headset and leave it in my bag unless I'm actually gaming/watching.
It's neat, it's niche, it'll be expensive, but I kinda want one.