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If Nintendo can't sell a Switch 2 for $399.99 then the reality is they've made a product that is undesirable for whatever reason, and if that's that the case, then they have bigger problems than just price.

$399.99 itself is not that expensive. The Switch launched at $299.99 when the PS4 was $399.99 ($100 less). Today the PS5 is $499.99 US (even more in Europe and Japan) and selling just fine, so a $100 less than that should be fine for Nintendo.

If the system is appealing enough with enough software that excites the core Nintendo fanbase (who tend to have more money to spend) then even $449.99 launch price they could likely get away with as you're probably going to be sold out for a while.