Wii U is currently struggling at its $299 price point, for $100-200 less u can get a PS3/360/Wii which have much bigger libraries and for $100-200 more u can get PS4/One which are much more powerful, have better 3rd party support, better online/mulitmedia features and all the hype in the world. Its kinda stuck in the middle, late adopters/casuals/families/people on tight budgets will choose 7th gen consoles and the early adopters/hardcore/techies/people with disposable income will choose PS4/One. One way to help fix this problem is to get the price down sooner rather than later. At $199 its much closer to 7th gen consoles and may be able to sway those who would regularly be late adopters and would be 40-50% the cost of Its fellow 8th gen consoles which could make it a nice secondary console to those who own them. The big problem is that the last time we heard from Nintendo, the Wii U was still selling at a loss meaning at $199 they would be losing alot of money. They have also stated that getting the manufacturing cost down was a big goal of theres so I wouldnt be surprised to see a redesign this year that is less expensive to manufacture. Im not sure what exactly they would have to do to accomplish this but I think a smaller/sleeker Gamepad that costs less to build would help alot, maybe about the size of the Vita. Lets say sometime in October they release the Wii U redesign bundled with Mario Kart 8 (will be about 6 months old by then) for $199, how well would this sell?

I dont know why its not showing paragraphs

$199 just a year after launch is embarrassing, but it might have to be done if sales drop to the same levels they did last year.

That's the price I got mine at :P

Well It would actually be much closer to 2 years going by what I said in the op

It would be a huge hit to Nintendo's bottom line, but they may have to do it. It all depends on how well the 3DS is doing, really. If Nintendo thinks they can still make a profit while taking a loss on the Wii U, then it has a chance of happening.

If I were Iwata, I'd pull the trigger. I'd sell the basic Wii U for $200 with Nintendo Land bundled, and at $250 sell the deluxe with Mario Kart 8 and Nintendo Land bundled.

They might have to considering that MK8 is quite a bit a ways from release. Nintendo will have to make a do or die move once they get closer to the release of MK8.

The Gamecube was $199.99 at launch.

Yikes, and it still sold that poorly :O . 

 A Mario Kart 8 bundle at 199$ would sell  like  gangbusters..