The original Wii had profit and marketshare and look where Nintendo is now. Honestly at this point it doesn't matter what Nintendo does this gen, they're still f**ked.
When the Wii U 8gb Skylander bundle was priced at $199 that didn't make a dent in sales so Nintendo shouldn't care about price cut. If they can't gain marketshare then make as much profit as they can. Besides, Nintendo is like the anti-price cut king.