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Nate said:
They must cut the price sometime soon in order to meet their sales target of 26M. Didn't anyone else notice that Wii sales were half of what they were last April? If it was up to me I'd do it with the launch of WSR or maybe at E3.

I doubt it.

First of all, the exchange rates are not favourable while this recession goes on, and it is most unlikely that they will cut so  as to make a loss on consoles. So, just possibly in Japan, but not anywhere else.

Secondly, a price cut would significantly increase demand - probably to above their current manufacturing capacity. Given the Japanese position they would be reluctant to increase capacity at present. So keeping sales flat is probably what they want to do.

Ofcourse, this is good news for E3 - because as others have pointed out they have something of a push to make their forecast on the current showing. So we can reasonably expect some kick-ass software to be announced that will boost the demand enough in the second half.