From what we know about the system, Nintendo is probably releasing hardware which is fairly traditional console hardware; and falls somewhere between the Wii strategy (unusually low performance hardware) and the HD console strategy (unusually high performance hardware). With this in mind, the hardware probably will fall into a traditional hardware manufacturing price range for consoles, and adjusted for inflation I would expect it to sell at $250 to $350.
If Nintendo is able to launch for $350 and bundles the system with a collection of mini-games that are more polished versions of the demos they had on display at E3 I doubt that the price would be seen as that much of a negative; especially if the system comes packed with a wiimote+nunchuck, and a HDMI cable.







