If the GC had a dvd drive and used regular sized discs, who knows how well Nintendo would have done and how much more third party support they would have have. I feel as if they would be close to xbox sales or even surpass them.
Though lack of dvd drive definitely lowered the price.
The thing is, we don't know that. The fact is the GC couldn't get folks to buy in even at some insanely cheap price. People want value more than anything and if that value is there, they'll pay. It's really as simple as that. If they can get the balance of good features, games, and price then they'll have a winner. I remember people saying that the Wii was too expensive for the price, but lots of people were more than happy to pay for that because the value was there. This will be true for the NS as will be true for every electronics device ever.
I'm not saying that price doesn't matter, but people put more weight in the value of a thing before the price.