Nintendo can credit the Yen for the price change, which would help in market perception. Also, I don't think people care that much. They abruptly dropped the 3DS price when it wasn't selling and consumers didn't say "ha! you don't have faith in your product!", they said "Woo hoo! it's cheaper now. I'm buying one!". Nintendo needs to get as much hardware in peoples hands as soon as possible so that they can sell the software, and so that 3rd parties will want to sell their software on the system. And it doesn't matter if the yen drop covers nintendo's loss per system. They are ok with the loss as they have priced it as such. The yen drop just needs to cover the drop in price of the system to maintain the revenue per system level they budgeted for, while having the benifit of moving more hardware. A 100 yen per dollar would put it at a level that would cover a 15% price drop and still generate an extra 10% revenue per system.
