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Two reasons.

1. the gamepad costs Nintendo around $70 to make. while the controllers in the PS4/XB1 cost around $25.

2. for the same reason MS isn't slashing the price of the XB1 and selling it for $199 even if they can afford to. At some point you realize that the cost isn't what is stopping your console from selling. At that point the smarter thing to do is focus on profitability so you can at least recoup most of your losses. And not on market share which could mean you would jut bleed more money.