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They honestly should just ditch the gamepad. That would likely lop $70 off the production cost right there and immediately start selling the thing for a much lower cost. 

Sell the tablet seperately with Nintendo Land bundled for those who decide they want it later. 

I realize they may not want to, but it's getting to the point where they need to maximize the userbase for the machine for the sake of the games so that they at least have a chance of selling a good amount of copies.

The hardware concept is a dud, it's time to just accept it and make the best of a bad situation.