I'm fine with the hardware price, wouldn't mind if they pushed it to $500 if it meant better hardware.
Nintendo moving towards a more premium range of hardware is a good thing and will result in a better software ecosystem over the next 4-5 years, I think this time around they will do an actual Pro type model too to give them a mid-gen boost. You're getting decent hardware for a fair price, I'd rather have this than be sold a repackaged GameCube with a new controller thrown in and then be asked to pay 2.5x the price of a GameCube.
The software pricing is a bit on the high side, I think they will eventually settle it in at about $10 cheaper, but physical buyers are going to kinda have to accept physical is dying and basically physical games as time goes on are going to be nothing but physical vouchers for downloads. If you want physical games, you can pay more for them because they are more expensive to produce ($10 cut for a retailer + shipping costs + packaging cost + actual cost of the cartridge itself).
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