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shams said:
People are forgetting one big thing:

- Nintendo are kicking arse
- they posted a $1bn profit last qrt, compared to basically not much for their rivals

Choosing a low price point is part of the overall "strategy" of the Wii, positioning it as the console for everyone - rather than some expensive, techno device for selected consumers.

Its also worth noting they were making a profit from day#1 - versus a huge loss by their competitors.

...

All that said, I think they could have picked a $299 price point - with a drop to $249 last Xmas. I think $299 should be the price point for the Wii HD (when it launches in 2-3 years).

The ironic thing about that is that, if the rumors are true, Nintendo initially planned to launch at $199, but pressure from retailers brought it up to $249. I'm still not completely sold on that story myself, mind you, since it just seems bizzare, but...