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RolStoppable said:

Any way you look at it, the 3DS should have never launched at a price of above $200.

This says it all right here.  If the system had launched at $199, a further price drop to $169 would have never been needed in the first place, at least not that soon.  Great software would have carried it through the holidays at that price and us ambassadors would have never had to pay that extra $50 for a bunch of "free" games we already have.

$250 is just too much for a dedicated handheld device.  For example, the PS3 at its $599 launch price was actually not overpriced.  Getting a cutting edge game system and a blu-ray player for six hundred bucks in 2006 was a steal.  But there's a profound difference between overpriced and too expensive, which the PS3 was.  The 3DS at $250 was both.