If they want an effective price cut, it should be $100 off but by then Nintendo will start losing more money than making.

I wonder if they are secretly hoping a stagnant price will make the system more luxurious once a good title releases for it. Keeping a $300 system that is struggling to move makes Nintendo home console presence increasingly irrelevant until NX launches. But I guess Nintendo believes it can't get any worse than it is and hopes the a new system can restart and carry momentum all on its own.

New bundles are their price cut.

Nope. No point dropping the price and sacrificing revenue on an already failed product.

I honestly never agreed with the idea that slashing the price would cut that much into profits. A competitively priced Wii U means that out the gate consumers have more money to buy more games. If I had $400 to buy a games system, and the Wii U was say $199.99, I would easily grab that and 2-3 games and accessories. I feel like by slashing the home console price it would lead to a major boost in software sales to counteract whatever loss they would have gotten from the system cut.

The bolded is your problem.

You =/= everyone else. 

Even if a product is priced at $199 it doesn't mean people will buy it. Remember how the Amazon Fire Phone went from $199 to $0.99 but still no one wanted to buy it. 

And even if the people do buy that $199 product it doesn't mean that they'll buy more software at all. 

It still encourages customers to buy more software and accessorites when the entry level price for the system is very low. I based that example off of what I have seen working retail during the holiday time. If the system is priced right and marketed correctly with its line up of games it has the potential to do well.

Officially, no. But unofficially, you bet. Even last year and earlier this year it's been possible to buy a new Wii U for as low as $260 at certain retailers. I guarantee there will be retailers who mark it down to $250 or even below this year.