For me, this is 2007 all over again. In the summer of 2007, I bought an original iPhone (the 8GB model) for $600. A few months later, in September, Apple dropped the price to $400. The Internet exploded. It wasn't good. Apple's customers were furious that in just a few short months their phone was now available for two-thirds of its original price.
Apple responded almost instantly, by offering up a $100 Apple Store gift card to everybody that paid the original price. It seemed to quell things for them pretty well. Even though the gift card was only for half the value of the price cut, I felt fine. We all knew the iPhone's price was going to drop eventually, and that we would be paying more by buying it first. We just didn't expect it to happen so soon. By thanking us with the $100 gift card (essentially making the price cut only $100 in our minds) it made things OK.
When I woke up this morning to news of a price cut to the 3DS, it flashed me back to the summer of '06. The situation is almost identical, with the 3DS getting a 33% price cut within a few months of its launch. But Nintendo learned something from Apple's mistake. Rather than offering up the 20 free games as a reaction to customers' negativity, they did it up front in an effort to prevent the negativity from even setting in. I think it's a rather smart move. At the very least, it worked on me.
Take a look at the average price of NES and SNES games on the Wii Virtual Console. They are $5 and $8 respectively. Nintendo is giving us 10 of each. That's $130 in games, half of which are "exclusive" to the Ambassadors (though I seriously doubt that will last). $130 in games in reaction to a $70 price cut is a pretty good deal. Apple's $100 gift card was 50% of the iPhone's price cut. Nintendo's gift-of-games is almost 200% the value of their $80 price cut.
To be honestly, I don't really care about the NES games. They're good, but they've all been played to death. The GBA games on the other hand, are 5 of the absolute best. Even though I own all of them except Yoshi's Island (which I have on SNES), it'll be nice to have them all on one system. As for the NES games, I would have preferred a $50 eShop credit. But I'm not going to scoff at free games. Even if I only play half of the free games, that's still $65 worth of content, which is about the amount of the price cut.
I say good on Nintendo for being smart enough to handle this price cut about as well as they possibly could. It's nice to see them really backed into a corner and responding with some aggressive tactics.