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The system will be dead if they let it sit at $350 and continue to post mediocre sales month after month.

Pikmin 3 and Wii Fit U aren't going to do crap-all, even 3D Mario won't help that much if 2D Mario is failing to sell the system.

Mario Kart is probably the only thing they can rush out this year that would have an impact on hardware sales.

I've always kinda felt though that Nintendo cared more about their handhelds than they do about their consoles (in recent times). They were willing to pull out an emergency price cut and secure Monster Hunter for the 3DS, the Wii U is probably not going to get anything like that and will be left to flounder so Nintendo doesn't have to incur any more losses.