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True, a price cut could help attract more customers, but as someone who already owns a Wii I'm much more enthused that Nintendo's deciding to pursue the "more killer-apps" approach instead.

Moreover, I think that's a wiser decision from a business standpoint: consumers are less likely to wait for the "inevitable" price drop if you show them that you're not going to drop the price anytime soon. For example, I know many people don't get Sega or Ubisoft titles in particular on the first day, because they're often discounted by the second month.

Plus, a killer app not only attracts new customers, it provides additional incentive for current owners to pay you again, and to not stray from your console. A price cut does nothing for an owner who bought the console months ago and is beginning to tire of his current games; a new game will add more fuel to that fire. Considering that many Wii owners in particular are new to gaming, I think it's wise to make sure that THEY stay in the game (and consequently continue to act as your missionaries for their friends).