I think too many people see it as a good thing. This is a bad thing.
Wii sales are fine, even if they'll miss their projection. They need software, not price cuts (which we haven't had moving software since early 08). This will only get them in a price war if they do, something the system is trying to avoid.
I see this as a bad thing. Nintendo can get the momentum started with NSMBWii, Zelda (if it uses lots of MP and is action packed) and the Vitality Sensor game. This is a bad idea for Nintendo. Unless they are removing Wii Sports, then maybe. Other possibility is keeping Wii Sports and adding Wii Sports Resort to the $250 package. Then it would make sense. I hope that is their plan.
Anyone that said a price cut was needed was instantly called away and told that Nintendo always follows Blue Ocean strategy and that they would bring games and thousands of things before cutting the price. Yet no one took into consideration the death of momentum and the inability they will have to reach projections without it. I will be very happy to serve crow to many people.
You focus too much on projections. That is a very short term thinking. The reason many thought the price cut wouldn't happen is because it is a bad idea. It only seemed logical to think they wouldn't cut the price. Projections only look at quarterly and yearly results. In the long run, they are meaningless. This can cause a lot of problems down the road for Nintendo. One being a lack of revenue that could go to R&D for new products or better software. Another is this means they are competing, which may destory everything they've worked for.
