Price cut as a Blue Ocean strategy?

[LordTheNightKnight]

Smashchu2 said:
Price cuts are a Red ocean strategy because of their reason, not their result. Companies will cut price when in competition. If you know your history, companies in the turn of the 20th century would drastically lower their prices to beat out their competitors and then jack them up when they were the only ones in the market. Firms cut price when they are competing. Otherwise, they won't mind a higher price to increase revenue.

Nintendo cutting price would mean they are in competition with Sony and Microsoft. The byline of the Blue Ocean Strategy is "Make your competition irrelevant." Nintendo is not going to compete with either Sony or Microsoft. By making compelling software, they are keep a high profit margin and attract costumers in a Blue Ocean way.

Or as I wrote, when the Wii is competing with the successor. Only then will Nintendo feel the price can be dropped, since it's to sell more systems in the face of the new one.