I agree somewhat with malstrom but for slightly different reasons. I not predicting doom and gloom like he is and I personally don't understand why deducting a mere 50 bucks from your console an entire 3 years after release is completely "submitting to the red ocean," however I do think Nintendo should have waited this out until at least early next year. The reason being Nintendo has two HUGE guns already to go into the holiday season; Wii Fit Plus and NSMB. These games would probably be the equivillant of a price cut in terms of marketing hype and sales boosts for the next several months.
At the very least, they should have waited to see where the PS3 and 360 sales stabilize after the hype of their respective price cuts die down. Because if they receded back to the lvls before the price cuts, then Nintendo would have a MAJOR advantage and still have the price cut card in their hands to use at their disposal while Sony and MS's hands would be ties for quite awhile after numerous price cuts already. Basically, this price cut won't hurt nintendo like Malstrom claims, and may actually help nintendo gain momentum which WILL benefit them long term. However, I am with him in that this was the wrong move to make for nintendo at this time.