I dunno, it seems to be working pretty well for them on the 3DS (the WiiU, not so much...):

http://www.nintendo.co.jp/ir/en/sales/hard_soft/index.html

http://www.nintendo.co.jp/ir/en/sales/software/3ds.html

What's wrong with making good games and charging more than a fast food lunch for them? It's not like anybody levels this complaint at Microsoft or Sony, who tend to charge even more for new releases.