The Wii U "price advantage" is killed by the PS3/360 which will continue to get third party support for the next 3-4 years. If devs can bother to make a Wii U game, they'll make a PS3/360 version too. Not going to ignore 150+ million users for a piddly Wii U userbase.
Wii U's not even competing with PS4/720 so I don't even see that as an actual problem. I dare ya (seriously double dare ya) to go into any retailer and try to talk someone getting a PS4/720 this fall into getting a Wii U. You're wasting your breath. This is a completely different audience, Nintendo lost a lot of this crowd a long time ago.
PS3/360 are the bigger problem for Nintendo, I can see a lot of parents and even kids preferring those systems. They have far more games, cheaper entry price, better online services, better hardware bundles, and waves of $20 games. You can get a PS3 + 4-5 pretty damn good discounted games for $350 pretty easily right now, makes the Nintendo Land bundle look like crap.
I suspect price cuts for the PS3/360 are incoming this summer/fall also. Both overdue.
A $199.99 PS3/360 with a game bundled this fall is a bigger problem for Nintendo.
Nintendo needs to get off their asses and make something NEW (NOT MARIO or a mini-game collection) that can break through and requires a new audience to get the system, something that's a big hit. Every other route is a dead end IMO.
