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Why? Because they're desperate, that's why. Even with a price drop and big games releasing soon, the Wii U is probably going to end up with a really bad 2014, I'll be surprised if they manage more than 8 million units for the whole year.

Dropping the price after less than one year on the market is a sign of weakness from Nintendo and this might cause them to keep losing money on the hardware well into next year. This is isn't a bad move per say, the whole concept (or lack thereof) of the Wii U was a bad move, in my opinion.

They're in deep trouble and they know it, this price cut is a sure sign of that, if anything.