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There's a lot of factors to consider and no clear answer. But I have to agree on the "quality matters" argument, and also on the perception of the Nintendo brand.

In recent history, Nintendo slashed the price of the following games: Star Fox Zero, Sing Party, Nintendo Land, Chibi Robo Zip Lash, Codename STEAM, Little Battlers Experience, Bravely Second, Mario Tennis Ultra Smash. What do all of those games have in common? None of them was a critical and commercial success, neither with fans or the critics. I'm sure they're willing to lower the price of their games if said games are not up to the standard of Smash, 3D and 2D Mario, Zelda, etc.