And I guess Microsoft should have just kept the price at £299?
Nintendo are trying to be competitive, and offer gamers the best deal that is available at present.
And who really cares if Nintendo are running from the competition or not? This makes gamers happy.
BJW, I don't think it would have sold as good even if it was 'only' £40 more. This way, the gamers can buy one more game at launch (£39). I bet this price drop will boost pre-orders even further, just like the pice drop did for the Xbox.