You're just waffling now. The point is Nintendo is currently leaving money on the table, something they wouldn't do if they were truly all about maximizing profits.
I'm not following your logic regarding price at all. That 3rd partys pump out yearly sequels don't mean a price drop would lower consumer interest. Yes let's look at BotW and Smash Bros., ok and? You seriously think they'd sell worse if they were lowered to $40? I can tell you if Smash was $40 right now I'd own the game. Again, why are you defending this, why do you want to pay more for your games?
The Point is that there's no reason for Nintendo to change their business model because as the saying goes, "If it ain't broke, don't fix it". Nintendo has relied on its premium, yet affordable pricing model for decades, ever since its first console. Why is there any reason to change that significantly now? Because everyone else is doing it? Nintendo lives or dies by how good their software makes their hardware look. If people keep buying Smash Bros. with a Switch, what good would it do to slash the price not even a year later?
I'm arguing about this from a business perspective. There's little financial gain in Nintendo doing heavy price drops for their games in a short time frame when it's been proven time and time again, they'll still get just as much sales from keeping them full price over a longer period of time. Again, just look at the NPD results and other international charts. Nintendo games from 2-3 years ago still regularly chart in high positions.