I don't think it is price - at least not that $50 would make a significant difference. Wii doesn't really have any significant competitors in the extended market at present so price is not a major factor, unless it ever comes below $100.
Same goes for colours etc.
And WSR will probably mostly sell to those already playing WiiSports.
I think there are two things that are holding Wii back:
The first is gamer dislike/hate. WM+ will probably change that, with demonstrably better gaming experiences in FPS, swordplay, sports.
The second is down to compelling content and advertising for the extended market over Christmas. New gamers will likely tend to buy at holiday season rather than during the year, so I wouldn't be all that worried about the relatively low sales right now, but look forward to a massive surge later in the year, with word-of-mouth spreading sales into Jan/Feb.
We have probably not seen all of the holiday lineup yet either.
Actually, flat sales at a production capacity of 26m isn't necessarily a bad thing. It'll probably stay at that level for another 2 years. Doesn't mean anything is doomed.
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