I agree with everything except that Nintendo decided not to rescue the Wii U with heavy price cuts because consoles are not vitally important to their business.
I think it had more to do with not being able to afford it, or at the very least not willing to part with their precious cash reserves in order to do it. After already taking losses on the 3DS, I'm not sure even heavier losses on the Wii U would have been tolerated by investors. I'm not even sure it would have paid off anyway; even if the price of the Wii U dropped significantly, I don't think it would have dramatically increased sales because the system had other crippling problems besides price, so Nintendo would've likely lost more money.







