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I don't see the price as a problem, in and of itself. But, that price is going to move a lot fewer units than $199 or $249. Fewer systems sold means fewer games made, and smaller budgets for them. And, considering the poor library for Wii U, I think concern of this sort is perfectly reasonable.

Given all of this, I think $299 is too high. Nintendo hasn't earned my trust like MS and Sony have, and that price tag doesn't help.