Clearing the channel of product 2.0 before flooding the channel with product 3.0 ? If the market is moving faster than you are, then prices of yesterdays technology can only drop over time so cannibalizing future sales at $200 discount by providing a $100 discount is a good idea.
Your question is clear in an abstract sense but AFAIK Nintendo has never sold a console at a loss even on launch day and Amazon tablet product sell for more than the profitable price of imported semi-legit Chinese tablets. A kindle fire hd 10 (which I'm considering getting to use as a big screen kindle appliance) is well over $100 from amazon and a seemingly identical NeuTab is $70, so Amazon is likely making about $50 off each kindle. Sony does sell at a loss which makes them go insane over unlicensed homebrew software displacing their profitable software.
Your question is clear in an abstract sense but AFAIK Nintendo has never sold a console at a loss even on launch day and Amazon tablet product sell for more than the profitable price of imported semi-legit Chinese tablets. A kindle fire hd 10 (which I'm considering getting to use as a big screen kindle appliance) is well over $100 from amazon and a seemingly identical NeuTab is $70, so Amazon is likely making about $50 off each kindle. Sony does sell at a loss which makes them go insane over unlicensed homebrew software displacing their profitable software.