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Fact 2 = they are $200 cheaper than their main competitors without a price drop and selling better then them in the biggest market
Uh... I'm pretty sure PS2 and Wii are competitive systems too... And they're both outselling 360 on a regular basis in all three major markets... That alone is the case for a price cut. But everything else you said is spot on.



"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."

Satoru Iwata, Nintendo President. Only slightly paraphrased.