The thing with pricing is on systems like the NES where the ROMs cost virtually nothing to send to the end user, they should be trying to maximum profits, not price. The number of games I buy is going to be inversely proportional to the price per game.
Sure, they could stick it at $10 a game and I'd probably buy a few, but it becomes less of a selling point that way. They stick them at $1 a game or less, and I'm going to buy hundreds... they get more money, I get more games, and I get a more compelling reason to buy the system. It's win-win.
In fact, here's my promise to Nintendo:
If you:
1. put a $0.99 a game download fee for NES, Genesis, and SNES games (you can charge more for N64 games if you like)...
2. get the 3rd parties I care about (Koei, Enix, Capcom, Konami, Sega, FCI, HotB) on board
I will personally buy 100 games on the day the system launches.