Hell no, this was the right move for them to make.

They made some pretty bad mistakes and they had to lower the price this far. You can't cut your prices more than once a year or so without customers getting nervous. Honestly a price cut to $199 wouldn't be enough. Imagine one more year of mediocre 3DS sales at $199 with the PS Vita being out.

Also at this price people who want a DS can basically get a 3DS for the same price. This was definitely the right move.

Now all they need to do is announce Super Mario Bros, Brain Training, a 3DS enhanced Pokemon Grey and make clear they are targeting the mass market again.

Nintendo lost loads of consumer trust over the last months. It's good to see they realized it and hopefully they'll learn for the WiiU launch.

They say the price drop in Europe is only to 180 euros, that is 10 euros less than what you can buy today.
I wouldn't call that too much.

This was the smartest move they could do. Im glad they dropped it that much

im sorry to say this but if they would have kept it at 250$ PS Vita would have DESTROYED Nintendo 3DS sales wise..

This. Once I found out Sony was really going to be able to produce the Vita for $250 retail, I knew either they were taking a huge loss or Nintendo's 3DS was way overpriced... most likely the latter.

I sold my 3DS. Hopefully the Vita will have good game support and crossplatform play with PS3 games as it will be my first Sony handheld experience.

I would also like to reinforce this by emphasizing that a price cut of this magnitude sends a clear message to both consumers as well as third parties:

"No need to wait any more, or hold out for a "Lite" model". Hell, at this price, any publisher sitting on decent games that can be ready by Christmas would be a fool not to make them their highest priority. (I hope that doesn't translate into heaps of garbage being dumped come November )

Not necessarily. $200 X360 didn't destroy the $250 Wii for quite some time, until Nintendo themselves dropped the price (and not because of any threat from the 360)

Power and features are irrelevant in face of games, though the question of games is still up in the air in regards to 3DS vs Vita

I hope you have a good first experience!  Hopefully the price cut doesn't sway you to pick a 3DS over a Vita, I think it's gonna be pretty damn good.

I don't think so ...

I suspect that one of the core reasons for Nintendo to launch the system in March was to give them a head-start to build a userbase and game library before Sony brought the PS Vita to market. They (probably) priced the 3DS under the assumption that initial demand would be high enough to support the system at that price, believed that Sony would price the PS Vita in the $350+ range, and also wanted a padded price to protect against exchange rate changes.

All things considered, many of Nintendo's assumptions turned out to be wrong and they're now in a position where they need to be more agressive to compensate for lost time in order to be in the position they wanted to be.

You can't have a too low price

Definitely not good times for Nintendo currently. Massive drops in hardware sales with the Wii and DS now combined with this massive cut it price for the 3DS. They are going to need to sell a LOT of 3DS hardware to make up those lost profits. I really don't see that happening with their current software. Every giant has to fall and it's Nintendos turn once again.