By your own logic, SMB was bundled with almost every NES and SMB3 wasn't. Going back to something you understand, you know what series was in a real decline that you can get actual sales data to back up? Street Fighter. Look at SF3. Sold horrible, until the retro revivial. Guess what? 2D Cacpcom fighters are also in decline. Look at SF X Tekken. Should they be budget titles?
You're grasping for straws.
Apples to apples: Globally, SMB was bundled, it sold 40m. SMW was bundled, it sold 20m.
Explain the SF sales decline with numbers I can't follow.
If I'm wrong, I will admit. Until then until all my questions are answered I won't give up.
I'm at work and don't have time to compile all the SF numbers becuase of all the platforms and versions of the games, but I'll do it later unless someone beats me to it. A Series isn't in decline if it sells more versions then the pervious instlallment, it just means one game in the series (SMB) is an outlier, since The Lost Levels < SMB2 < SMB3 < SMW. You also have to take the userbase into consideration when looking at those numbers.
You're analogies are all really weak. You compared over pricing NSMB games to over pricing the PS3. The PS3 actually had a lot of value for the price (Blue Ray player) but still sold horribley. In addition it wasn't the stigma of the price that hurt it as much as the price itslef.
It would be better to compare it to the 3DS launch. Still a stretch, but the similiarity is that both could afford the price cut. If it doesn't cost much for Nintendo to make the game, and it doesn't sell, they can drop the price and people will start buying it. Like the 3DS.
Anyway, I have to work.