Well I definitely don't think they are releasing it at a static price. I don't know what that means, but they were very clear about their opinion on the "$300 hardware/$60 software" model. They think it's antiquated. They brought this point up in the same paragraph that they first hinted at My Nintendo as a solution to the software part, and they specifically mentioned hardware too.

I don't know what they plan to do, but don't be suprised when they do something. I'd be very suprised if they launched NX at $400 with no catch, even if I personally would be very fine paying that. They've expressed, on numerous occasion, an objection to anything over $300, and even implied that that was more than they wanted. Subsidation was just my guess since Apple does it and it works for them. 

ya if PS4K is real & NX is just slightly more powerful than PS4 with an upgraded Gamepad than that sounds alot like their current situation with Wii U.

Microsoft kinda did the subscription service thing before with XBox 360, it didn't work out so hot as I recall.

There are some other issues too like what happens if say the "subscription" is supposed to be for 3 years, let say and someone decides to stop paying their monthly fee. 

Remember the patent for the Supplemental Computing Device? If I remember correctly, it stated the potential to license out your SCD to others and get reimbursed. If any NX device can act as an SCD than that could their way of shaking up hardware pricing.

It would sorta be the hardware version of My Nintendo since games are still the same price, you just accumulate points by purchasing games.

It would be a very similar situation. 

In all honesty, I don't know if there is a silver bullet approach any which way for Nintendo. This is going to be tough for them on the console side, they have given up too much of the market and need something incredibly impressive just to get on people's radar. 

They won't get any developer support without a powerful machine though, and I think we forget the whole crux of the hardware model is that the hardware maker gets licensing fees for doing all the difficult of marketing/R&D/hardware design. That's why 3rd parties pay $5-$10 every copy of every game, because they don't want to be bothered with that. 

Refresh my memory - what is an SCD?

well im assuming if they were to go that route than your device would be somehow be deactivated if you didnt pay, just like your cable/internet/phone/utilities get shut off when you dont pay.

Supplemental Computing Device

http://www.nintendolife.com/news/2015/12/intriguing_nintendo_patent_points_to_supplemental_computing_device_and_cloud_resources_for_a_gaming_system

Problem is though Nintendo is still stuck with a sunk cost on hardware.

very true, i really doubt they will go with a subsidized model.