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!
Nintendo won't release a console at 400$, this is not possible. If they do this it will be a flop and they know it.
300$ is really the maximum they can price it, and still it is expensive. The Wii U will only be successful at 250 in my opinion.