Well then here's my question:
Where does the WiiU need to be priced for each sold to remain profitable? I don't think anybody but Nintendo knows, but you're talking about generating sales by slashing the price by~60%! While that would undoubtedly increase sales, what is the profit margin on selling a console you originally priced at $350, now for $150-$170?
The ONLY way I see Nintendo catching a break this year is with
A) At LEAST one or two "must have, AAA" titles by Christmas.
B) A price drop
B) Xbox1 and PS4 shortages spur conciliatory WiiU sales
That's essentially what happened when the Playstation 2 launched; it was such a disaster with hardware shortages, it actually HELPED the Dreamcast, and Sega's sales boomed.
The problem is, the Dreamcast actually had a NUMBER of very good, very popular titles at that point. The WiiU, doesn't.
That's a bunch of separate issues
Okay, without going into excruciating detail, the basics is that pricing on the manufacture of a particular item like a console can come down absolutely massively over time, even a short amount of time, if you plan well. Looking at WiiU specs, it should be possible within a relatively short time to both drop the price hugely as well as beef up the SKUs, and perhaps/probably improve quality as well. You can bookmark this post, because I'm hazarding a guess that an improved tablet will hit perhaps by Xmas '14.
The launch is always most expensive because you have to source all this stuff, get the assembly lines up and running, and so on, on a tight timeframe. Once that's up and running smoothly, you can apply improved logistics as things become available. Just looking at the history of consoles like the PS1/PS2/PS3/360, you can see the revisions and cost-cutting/feature-adding (with some exceptions) over time.
So yes, I do believe that somewhere between $149-$179 will be possible by holidays of 2014, and perhaps $229-$249 for a good SKU this holiday season. Maybe they'll surprise us with a $199 figure. Whatever happens, they will keep a lid on it until the last possible moment.
Moving on to titles. Many people will be thrilled with the combo of Super Mario 3d World and Donkey Kong Country, and some will even be thrilled with Wind Walker HD, even though I think it's super lame. Yes, it's pretty thin outside of that this year, but those are two massive 1st-party titles that will sell a decent number of systems this year. Going through what 2014 should offer, I think things will start to warm up then.
All that said, I'm not going to get one until I see more than 1 or 2 or even 3 or 4 major 1st-party titles. I want to see a great bundle with one of those major titles AND 5+ awesome games. I also know that WiiU is never going to amount to more than an interesting 3rd-place console. But if Nintendo plays their limited cards well, they will keep making money even without directly taking on Sony/Microsoft. In fact, I think it's actually silly to even consider cross-platform titles for the WiiU at all. The console is too weak to do them justice, development will be expensive and troublesome due to no x86 and very weak CPU/GPU/RAM specs. 1st-party and a select number of 3rd party titles created exclusively for WiiU will be the only reason to own the system. CoD/Creed/Madden/Tiger/etc honestly shouldn't even be attempted on WiiU. Everyone on earth already has either a PS3 and/or 360. Why play those titles on a system that isn't suited for them? Nothing will change moving forward either.
WiiU will bet the system you possibly have in
ADDITION to PS4 or XB1. Not the system you have
INSTEAD of a PS4/XB1.