If they are cutting their price as a reaction to 360 and PS3 price cuts, then it is a red ocean.
The fact is, Sony and Microsoft are losing money with their price cuts in a trade off for more market share. They can do this because they have gaming "divisions" within their overall company.
Nintendo is STRICTLY a game developer and publisher, so they can not risk losing money in the same way. They will always go for profit over market share.
I feel like their focus right now is to graduate casual players, so to speak. With WSR and WF+, they seem to be advancing beginning players to become more seasoned (perhaps not core, but active).







