Wont be an epic fail if it were at 20k, but certainly a lot less compelling. Nokia needs to create a splash if they have any hope of regaining lost market, especially with a new a OS with a lacking app store. They need to take a leaf out of Google's book, I mean the nexus 4 retails at the same price in the US and its got 2GB RAM, Quad core S4pro Krait, adreno 320, 4.7 inch screen and the latest Android updates for quite a while.
I know that WP8 doesnt need a lot of RAM, but 512MB is still not good enough. If it sells at 13-14k then it will be a huge success, at 18-20k it will be a decent option, though personally Id still choose the L9 in the same range.