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Mythmaker1 said:

Yes, they have plenty of money. But their prestige is on the line, and Iwata has basically put his position on the line to guarentee a certain profitability. It's not as simple as just absorbing the losses.

If they issue a price cut, they'll lose a lot of face, since they publically stated there wasn't one in the forseeable future. The games are coming, but history has shown that games alone do not cause long-term sales growth. Marketing has been a disaster from the start.

Suspending production will only make the situation look worse. It would make consumers, publishers and stockholders very uneasy about the Wii U and possibly destroy any chance of it regaining momentum. Nintendo has something up their sleeve and I don't think they are going to suspend production until they lay everything out.