The price cut, if it happens, is not a mistake. It's a good idea. The price was good when it released. The price was good when it was selling out every week. This is 2009, where technology that is technically superior are much cheaper, and when HD, what the wii doesn't have, is becoming more and more relevant.
You have to keep the price relevant to the circumstances and the time. If Wii had released now, they wouldn't have gotten away with selling it for $250. Besides, to pull in more and more people, you need a price cut or two. The PS2 did not sell all 140 million at full price - far from it, and people certainly werent put off when it got cheaper. It only helped. Besides, when Wii 2 eventually hits, it'll probably be around $250 as well. If the Wii 1 was still that price, or thereabouts, people would feel cheated considering that the vastly inferior (I'm assuming) first Wii had been asking the same price.
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