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It's obvious that games, not price, is the problem. People went bonkers for the Wii at $250. In fact, according to economics, the system was underpriced as it created a shortage of the system. If it goes from being bought out and then not the next day, then something must be a foot. They were willing to buy it when the price was $250 and that hasn't changed. The software, however, has been lacking. Nintendo themselves has said it (which is why I am thinking the Toys R Us ad may be a fake) that software is the problem. Iwata said this is Nintendo's biggest year. Why would they need a price cut (NOTE:Firms want prices to be high to maximize revenue. Consumer's demand is want makes them not jack up prices).