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Mr Khan said:

It's a bad idea on their part. The holiday season will be enough to boost their momentum, and then a price cut strategically stationed after the holiday season would be ideal to hold that momentum across. Price-cut before the holiday is not going to help their momentum that significantly through the holiday season, so they're just losing out on money they could be making.

I disagree. If they're going to cut next year anyway, why not do it now?

$199.99 is a price point consumers love and eat up, they can keep it there for a long time. 

But they want to hit their sales targets for the fiscal year and they aren't doing that if they under perform during the holiday months. 

They'll be fine next year, the Wii has a very strong lineup next year and the economy should improve next year too, so there won't be as much of the recession blues among consumer spending.