Sometime I don't understand the thinking of Iwata...

[Sullla]

Ail said:

With 70% marketshare the PS2 actually dropped prices quite often last gen, letting the customers benefit from reduced manufacturing costs. The only reason the PS3 isn't following suit is because Sony is bleeding money ( and dropping prices when you still make a profit after the price drops won't necessary affect your profit so much because you will sell more, dropping prices when you loose money amplify the loss a lot).
The Wii manufacturing costs have gone down quite a bit but with a lower marketshare the Wii price hasn't moved at all...

That's true... and Nintendo will make twice as much profit in this single fiscal year than Sony did in six years of total PS2 dominance of the market. Remember, Nintendo's goal is to make money. They don't care about raw unit sales or "winning" marketshare. They try to turn a profit, and in this regard Nintendo does better than every other gaming company in the world combined.

Now you're certainly free to disagree with their strategy, but I think it's pretty easy to understand.