I think this is a smart move. It would have been absolute madness if the Non-3G NGP cost like $300 or $350. Even with the lower specs, the NGP absolutely dwarfs the 3DS in specs as it is.
Priced competitively with the 3DS, I think NGP has a good chance to win Japan. The third-party support will be there coming off the strong PSP momentum. Capcom, Namco Bandai, Square-Enix, Konami, Sega, Tecmo-Koei, Atlus, Marvelous, etc. are all going to give it solid backing just like they have the PSP. In Europe and Others, NGP might fair well. PSP hardware is actually doing alright compared to DS hardware over there right now. In North America on the other hand, the PSP has been firmly in the niche category for awhile now and I don't see the NGP being any different.
