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@Anarchyz

unfortunately, I am far too lazy and uninformed to figure how much they would be able to make on a 250 vs a 200$ wii as far as demand and SW is concerned.

Generally speaking, a price drop is supposed to stop the drop of sales, and level it off at the previous quota. So if Nintendo keeps up it's trend of wii sales as they did last year between X and March (X being the date of a suspected price drop), then a price drop would have been useless. If it sells less, we can look at the difference, factor in all the variables and find what a price drop would have made them.

Yeah, i know, it's not very useful because we are trying to predict sales, but that's all we can do for now.

The best thing we can do is say, "a price drop on the wii would either negatively, or positively affect profits". Although it would be better if we knew what the demand was.