Well 360 has been cheaper than Wii since spring, but that's not excactly a price competition, since Nintendo didn't drop Wiis price.
As for the capability to price competition, i don't see either Sony or M$ to be able to start a competition. Nintendo is on its way of making 4 billion profit this year, so they could easilly take 2 billion hit from hardware and still make huge profit. Which means, that if we assume Wii would cost 100 to make, Nintendo could give away 20 million Wiis for free this year (while still making hefty profit).
And for M$ making money with Windows, they propably aren't going to support the gaming division for long, if it can't turn profit, since M$ knows it has pretty rough ride ahead in the next 5-10 years, so they need the money they have and M$ needs to keep its investors happy by making a lot of profit.
Ei Kiinasti.
Eikä Japanisti.
Vaan pannaan jalalla koreasti.
Nintendo games sell only on Nintendo system.
