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I think a price cut is needed for 2 reasons:

1. The competition. With the new gen consoles out the price difference might not feel justified when looking at the graphical output of the other platforms. Realise that with 100 more euros/dollars you can get a much higher tech Playstation 4.

2. Calling atention to the games. The advertisement. A price cut means advertisement, and with great games coming out for the Wii U this is a great excuse to give the consumer good reasons to buy a Wii U not just with a lower price point but a great line-up. (Zelda, mario, sonic, etc.)

I am pretty sure the Wii U would rebound with it, but im not sure Nintendo is willing to take the loss to turn it around. They should though. It gives publisher more confidence to release their titles.
Very importantly though: I want both the Wii U and Vita to turn around so Pachter is completely discredited in front of everyone. That guy is never right, claims things before he can claim them and comes in the internet to try and make them happen with his statements, skewing the public opinion to try and influence his predictions. I dont dislike him personally, but his agenda is unecessary and he needs to go off the public eye.