I think that's a good idea for Nintendo too. Since they figure the cost of R&D, marketing, production, etc. into the cost, their profits increase with each one they sell.
iirc the 3DS is selling under profit as well right now. When Nintendo sold it above that profit line, people deemed it to expensive. Now it's selling under profit, and people are buying it. I'm expecting something similar for the Wii U, but right from the start this time. Most profits are made selling games anyways, not the consoles themselves.