Price does not change things a huge amount unless that price is very high (IE the PS3). Look at the 360 sales, they are VIRTUALLY FLAT between Sept-Nov 07 and Sept-Nov 08. In fact the 360 sold 100k more between Sept 07 and Nov 07 then between Sept 08 and Nov 08. Dropping the price may have helped sustain the sales it had last year longer, but it by no means increased them. The PS2 and Wii did not take off only because of low price, they also were the dominant system in the public perception for their time.
That the 360 undercut the Wii by going to 199 vs 250 and barely hit last years numbers while the Wii more then doubled during the same time frame underscores that point. Remember when the gamecube went to 99 bucks to try and stay in the game and just fell further behind? Same thing here with the 360. You can't manufacture buzz with a low price alone.
As to the Wii the main limit seems to be production capacity. This is a HARD cap though. Nintendo would be stupid to make 40 million since it would only be sustainable for one year. What are they going to do, invest a bunch in new factory capacity so it can run for one year before dropping back to 20 million or so in production? The Wii may hit 80 or 90 million but it won't be until the end of 2010. You are assuming that the biggest month ever for the Wii (2 million) will be not only repeated but IMPROVED upon all next year which is just silly. Do you really think they're going to be making and selling over 3 million consoles in March 09? Alternately do you really think they're going to be selling 10 million in nov and dec 09 to make up for 1 million console march?
Even the PS2, which at this point in its life cycle was doing as well or better then the Wii, was NEVER gaining 40 million in sales a year, that is just silly.
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