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greenmedic88 said:

As for the no price drop; I'll be pretty surprised if we don't see a $199 Wii announced in time for the holiday season.

Price cut is a permanent solution for a temporary problem. 

 

In the past weeks, MH3 and WSR had such a big boost on hardware sales, probably even better than an $50 price cut, becaus that would have a shorter effect, for those who had only one barrier, the price. They would buy it on the month of the price cut, and Nintendo would be stuck with a console with decreased profits.  On the other hand, a good library increases the value forever. 

 

A price cut is like admitting that the product's value decreased. While it actually a natural part of a high-end technology product's life cycle, the Wii wasn't ever that. It sold well in 2008, because it had many good system-sellers. Now it didn't have system-sellers for a year, and it started to decrease. 

 

Adding software is better, because it increases the value instead of admitting that it doesn't worth that much