Obviously I do think a price drop would help, but I think the problems Wii U is experiencing are more than just a price problem. It is a branding and a marketing problem. Namely, the Wii name is hurting it. Current and past Wii owners don't see it as a reasonable upgrade. Part of that reason is price, but more of it is there is no reason to upgrade. As Nintendo said in their financial report, the tablet controller is hurting the system right now because it is coming off as unnecessary to the consumer.
Nintendo needs to fix the image of the system first. Price drop will obviously increase sales to those who are interested but can't afford and for consumers that go for bargain systems. But if the system is to sell better as a whole, Nintendo needs to convince Wii owners to buy into the Wii U... pun intended. I expect them to address this at E3, but I really hope that it isn't too late to change that image.
