NO but they did hurt potential wiiu sales.

I definitely think the Wii U will get a price drop this year. My guess is around the time Splatoon hits. $250 Splatoon Bunduru.

Are you implying the Wii U still has a chance at anything saleswise?

Maybe after E3, right now they know that the wii u is not going to be a super hit, so they'll gain every penny possible before a price drop. Prediction: $250 after E3 and next holiday a zelda wii u & Splatoon bundle for $300.

I bet Nintendo will make more profit than Microsoft this generation (only the xbox division of course), so sales aren't everything.

Right but it's still early considering they just made it permanent. Also I believe there was an increase YoY for all three simply because they all had more content to offer. Smash & Mario Kart for Nintendo. While they have a bigger (numbers not hype) line-up this year, one could easily argue that they already released their 2 biggest games for the console in the same year. Zelda will push consoles no doubt but highly doubt it can match Mario Kart/Smash, the rest will give small boosts for a few weeks.

This year there is more competition for Nintendo from Microsoft & Sony's first party as well as some really big third party games that more likely than not won't be appearing on the Wii U. So all in all, with the Xbox One now permanently being $350 and the PS4 having Last of Us bundled with it from now on, does Nintendo need to react, or are they simply gonna sit there and mind their own business?

Nintendo should of really been the first to price cut. It needs to drop the price to $200 to $250 depending if MS is doing a xbone price cut.

I think they have a chance to get out of the 30k-50k bubble that they were in practically all of 2014.

maybe after the fiscal year

To answer the thread title question: No. Nintendo will only reduce the price of the Wii U if the reduced price still nets them a profit on the sale. Considering the Wii U only started being profitable on each sale a year ago, I doubt they have managed to reduce production costs by another $50/unit already. For better or worse, Nintendo's focus is profit, not marketshare, so I don't see a price reduction coming until summer at the earliest.