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People tend to confuse price and value. Right now, the problem with the Wii U is value not price.

300-350 is perfectly reasonable for what is being offered. The system is more powerful than other systems that are currently retailing for 200-300, it has a tablet controller, a unique online interface, etc.

The problem is value. Nintendo has yet to show off great looking games that take advantage of the hardware, and they haven't shown off great games that really take advantage of the Gamepad.

If Nintendo showed off those things, they could charge 350. Hell, they could do 400. But so far it hasn't happened.