Because they can't afford to make it cheaper? Come on, guys.

How can that be when larger userbase = more profit over the long run, and smaller userbase = smaller profit over long run?

IMO they should have dropped the base price to $250 to coincide with the release of titles like Hyrule Warriors and Bayonetta 2 to boost sales and build momentum ahead of the holiday season and the release of SSB. Now for the past month they've been overshadowed (at least here in the US) by M$'s heavily advertising of the X1 and the big holiday releases for it along with the aggressive price drop / bundles.

they have to drop the gamepad imo if they ever want to have a chance. Nintendo gaming division has no giant electronics or software company backing them up its only nintendo so they cant sell their console below the production cost

XboxOne isn't even that better capability than the Wii U. They are totally different systems with totally different unique features. It just depends what kind of gamer you are.

I suspect Nintendo is prioritizing a good profit for the fiscal year at the moment over anything

They obviously dont want to take losses. Microsoft is losing alot of money with the price cut, but i think its a strategy that pays off in the long term. I wish Nintendo had been more agressive in that front.
Its true games are important and sell systems. But there is a good proposition in offering that great new game at a discounted price. Makes it feel like a better deal you shouldnt pass.

Nintendo has already accepted the fact that the WiiU is destined for 3rd place. All they care about now is making a profit. Microsoft on the other hand is eager to expand their marketshare.

Their biggest priority is to make a profit back. They understand that they are destined for 3rd this generation in the home console market.

Because Micro-soft love you long time.