For a home console, 299 would be fine, but it would again be underpowered. They need to sell it for what it is, a hybrid, and find the added value in that which they need to promote.
For me, 299 is the absolute maximum I'm paying after the WiiU, and it needs a pack in game. A real game, not a proof of concept demo. Maybe a third party game, why not skyrim.
250 would be better and I'd bite without a pack in game. Yet I don't understand Nintendo's reasoning here. They aren't strapped for cash, so if they don't want to sell at a loss, they should just sell it with zero profit in order to give the console the best chances to succeed. Having this thing succeed should be number one on their priority list, well above making money on hardware.
This is coming from a 25 year long (not old) Nintendo only gamer.