The market the NX is targeting is Android gaming tablets not PS4 and Xbones.
If it launches at more than $200 it will be dead on arrival.
You don't capture the low end of the market with high end prices. If the $400 price point is true then Nintendo have failed to learn from their many missteps with the Wii U.
Is it possible to discuss what price something should cost if we don't know what the exact product is or what functionality it offers.
Of course this device could be an absolute piece of shit that's severely underpowered, crappy build quality, lack of games, tacky gimmick and a commercial flop.
Or it could be the Wii all over again with some of the quality the Wii U catalgoue had. I don't think nowadays it takes a lot for a fad to catch on, infact I'd say with the way social media is it's probably easier than ever. If any of the big 3 are able to create a fad it's Nintendo.
I'd agree in general that history has shown that expensive gaming devices have ALWAYS been detrimental to sales.
I don't know why but I think the NX is going to be massively successful, and even if it's not I'm pretty much confident that it will be home to some of the best games this gen. Nintendo make some of the greatest games in my opinion, and you can always guarantee that they'll be polished and not released completely broken and in need of 10 patches.
With regards to the Wii U, I don't think it was price alone that caused it to bomb. The main thing for me was the way it was marketed, and the name. I can see the thinking behind it. Nintendo thought milking the Wii name would be easy, but it backfired, with many people not even knowing what the hell it was, add on or console, and also by that point many people who bought Wii's had them gathering dust, did they really need another?
Lack of 3rd party, and power is often mentioned but I don't think Nintendo need a "me too" console. Infact I think that would be the worst thing they could do. Why would Joe Consumer buy a Nintendo console that does the EXACT same as his PS4 or Xbox One.