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RolStoppable said:

$300 would be a huge gamble.

While it's true that Nintendo could initially sell the handheld at that price and it would still sell out, it's highly probable that sales would stall pretty soon after the launch period, forcing Nintendo to drop the price within the first year of availability. Quick price drops devalue products, because consumers expect further price cuts in the not to distant future. More people holding out obviously results in lower sales.

But most importantly, what Pachter is forgetting about is that every $50 less spent on the hardware itself can potentially go to software and that's where the real money is.

I don't often do this but......

This!