I think they will launch at $300+, due to inflation it's going to be harder to pack in features at $200. People are more than willing to pay that price for a new console, look at PS2. Plus Nintendo can always drop the price later.
Nintendo needs a powerful system next gen, period. The Wii remote got them through this generation amazingly well, but I don't see another revolution of this caliber coming next gen. If it has the same power as a PS3, you will once again see developers devoting their worst teams to make PS3/ Wii 2 games while the other consoles get the larger focus. It doesn't need to be a powerhouse, but for $300 in 2011 you could buy a system that is orders of magnitude more powerful than a PS3.







