Nintendo's biggest competition is themselves from a year ago. Still, to stay competitive and keep momentum, I would do this:
a) Cut the price of the original Wii to $160-190 to undercut Microsoft's $200 X-box arcade.
b) Cut the price of the original Wii Fit right now by $10-20 to clear stock space for Wii Fit Plus.
c) Package Wii Sports Resort and Wii Motion Plus with Multi-Colored Wii's and call it "Wii Plus". They could even improve the design and hardware if they wanted (which they won't). Sell this for $250.
Now as for Microsoft, they are probably feeling the heat of Sony's price cut more than Nintendo. Still, the Arcade is the cheapest console on the market right now, so they can't really do much. In any case, here's what I would do:
a) Cut all versions of the Xbox 360 by $30-50
b) Get rid of the X-box Elite and make the X-box 360 the same configuration. Black and White colors can still be there but only for aesthetics.
c) Beyond the holiday season, release a slimmer, better version of the 360 that vastly improves on the horrible failure rate of the original.
d) Get moving on Natal! We need it by next year at least!
That's my two cents.







