The basic does need to be dropped. I'm not sure why they even thought that was a good idea. TheDeluxe should then be offered in black and white with a lower price before the next holiday.
That should fix things up a bit.
But what Nintendo needs to get figured out is that they need more SW! The reason the 3DS had such a slow selling period is because there were almost no games available. Get it thru your heads Nintendo!
EDIT: I don't believe that it is selling horribly though. Superchunk is right on that point.