They took a chance (a chance worth taking) that the 3DS would sell huge like the Wii did initially. It came back to hurt them. I don't foresee them goofing around like that again.

Yes they will be ready to lose money, it wont matter the wii made plenty and some losses most likely wont affect them much.

It makes sense if they can use newer tech and sell it for a lower price, but that price must be reasonable.

Sony and Microsoft sell their hardware at a loss but in Sony's case the PS3 was still too expensive at launch even as they were losing about $100 a unit.

So high tech product $300, it will sell, high tech and $600 it will die.

Yes they will, not because its honorable but because its the only way they can compete with Microsoft and Sony.

Nintendo is known for releasing high end low cost hardware. When they launched 3DS they went in a new direction releasing solid quality hardware at a higher price. Fact is even if the hardware is worth that money Nintendo customers aren't accustomed to paying 250$ for a handheld. With WiiU Iwata said the hardware would not be cheap, but after 3DS's failure to maintain market share at launch or meet Nintendo's projections I don't think Nintendo is going to release the hardware too expensive.

Fact is apparently Nintendo is adding compatability for a second controller which will bump hardware costs. They also know Microsoft and Sony will release more powerful hardware and Nintendo needs to ensure their hardware is capable of playing multiplat games. The WiiU hardware will be far more expensive for Nintendo to manufacture then Wii was.

In the end Nintendo will launch WiiU between 300-400$ and they will take a loss of between 50$-100$ on each unit depending on the final hardware and price.

The other option is that Nintendo cuts corners to lower costs. It has been suggested that Nintendo is using cheaper components then initially revealed at E3 last year. That Nintendo is cutting corners to make the hardware cheaper to manufacture if that is the case then Nintendo might launch the hardware breaking even at 300$-400$.

But the only way for Nintendo to avoid losing money on the WiiU is if they cut corners. I talked to a Nintendo hardware development team member at PAX and he said he could not confirm nor deny the reports. However he could say that the rumor Nintendo was cutting costs wasn't like Nintendo, he was like it doesn't sound like something we would do.

My bet is Nintendo launches WiiU as the cheapest next gen console and they take a loss on each unit in exchange for market share and dominance!

I feel like the Wii U controller is far too essential. Wii U games (especially early ones) will be based around it. I can't imagine the system being sold without one. Maybe Nintendo might have to take a big loss here. 

Yes. They won't have much of a choice.

Lets see, they chose not to last gen, and the gen before, and the gen before that. Oh and every single home console they've ever sold. 

Nintendo is coming into the next gen in the best position it has been in since the SNES- N64 transition. They have a choice.

That really depends on how complex the tech in the pad is. Projected technology for the console itself would not be extremely expensive, and it does seem like they are, in part, shorting on some tech matters in the pad, like how it is not multitouch and is resistive instead of capacitive.

They could get good tech cheap, it seems like

The controller might not be cheap, and if they want to attract the PS3/X360 crowd (which I don't think it'll work) they'll need to close the power gap.

They should be able to sell it with a controller for 300 dollars/pounds and still make a profit. People seem to be fixated with this notion that the controller is going to be expensive to produce but most of the parts such as the buttons, slide pads, microphone, camera, IR lights, accelerometers and gyroscope are as cheap as chips to produce. The only expensive part of the controller is the touchscreen but even then they should be able to sell them at retail for around 100 dollars/pounds and still make a profit.