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Khuutra said:
Soundwave said:

Can you guys seriously knock off the Red Ocean/Blue Ocean bullsh-t. Just because you understand one meager theory doesn't give you insight into a multi-billion dollar corporation like Nintendo or what their financial goals are or what their arrangements with part suppliers are ... there are a million things you guys likely are not aware of.

Nintendo doesn't give a sh-t about Blue Ocean/Red Ocean when it doesn't serve their purposes. Simple as that.

Clearly things like market share, stock price, and brand momentuem also matter to them. 

Chill out there, compadre. I'll rephrase for you.

Nintendo is not necessarily doing this in response to Microsoft or Sony - for all intents and purposes, they could still be off by themselves, apart from the HD fray. The price drop could very well just be a consequence of flagging sales, and may have happened with or without Microsoft and Sony's drops.

Better?

Or maybe more simply Nintendo understands that they've worked too hard to gain their market standing with the Wii. And they aim to protect and grow that market, rather than to piss it away just to prove some economic theory that happens to give 10 nerds on the internet a woody in their pants. 

Nintendo doesn't give two craps about anything that doesn't serve their bottom line. If they felt like they could make more money with a $500 machine for the core gamer with uber-violent games, they would totally do that.