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Price reduction? - there's no reason, logic or incentive to Nintendo changing the price at this point whatsoever.

To me the only thing they should do in the near future is start bundling Wii Sports off with every Wii in Japan also as it represents a perfect demo on what the Wii can do so why wouldn't you want 100% of the Wii's userbase owning it?

That may even send sales up to a new level in Japan more so than a price cut.