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Squilliam said:
$199 is a pretty astute price. The 16GB PS3 is rumoured to start at $179 at the end of this year for a comparable model and the Xbox 360 will probably be cut down to ~$149 - $199 with Kinect. I don't think they could get away with charging much more than that, they need to offer good value against two very established competitors.

But then what are they competing for?  Scraps of gamers?  I don't know how much that controller is going to cost, but assuming 30 dollars bill of meterials, that means Nintendo is putting together a 170 dollars piece of technology... that won't exactly get you very far.  So either they really under powered the Wii U to PS3/360 levels or this rumoured price is wrong.