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Even though I believe the Wii is at a price level which is highly affordable for many consumers it is no where near to being so inexpensive that further price drops will not impact demand. It is likely that you will see demand increase as the Wii goes from $249 to $199, $149 and (finally) $99; at that point people will buy the system for 1 game. Besides that this generation will (likely) last as long as companies are selling a decent number of systems and games for each of the platforms. If Sony, Nintendo or Microsoft end up finding themselves in a position where they have sold less than (about) 5 Million consoles in a year and game sales are struggling they will replace their system or leave the market.