To be honest I think the system's goose is cooked pretty much either way. It's been a disaster for Nintendo from the day they unveiled it.
$199.99 and ditching or creating a smaller/cheaper version of the game pad would be probably their best play at this point, but $99.99 didn't save the GameCube, though it did provide a temporary boost for sure.
I think the larger problem is without a Wiimote like gimmick that creates an insane frenzy with consumers people simply don't want the "modern Nintendo console" (which basically means 3-5 really good Nintendo games per year + limited third party support + feature support such as online which tends to be behind the rest of the industry).
The only way to really change this is to have some kind of new miracle software title that drives a large number of systems to be sold, but that is also much easier said than done.
