About the price, remember this is Nintendo. They sell the game boy micro for $100.00, which is really close to the DS. They knew that only the hardcore fans would buy the micro for that price, and it would steer casual gamers to buy the DS for only $30.00 more. So the Revolution, which should cost $150.00 will more than likely cost 199.99 or 249.99. It inflates the price for a quick profit before they have to drop the price 2 years down the road, and keeps it cheaper than both PS3 and the XBox360. The price has to be considerably higher than the DS to not only sell more DS's, but to show how much more powerful it is than the DS. By the time the price drop comes, the money coming in won't be from the system anymore, but the library of games(from the NES and up) people are buying and playing on their Revolutions.
Inflate the price first, then make the money from software. All while you are still getting people to buy DS's. Those darn shifty asians and their math and business skills.