The many people commenting on the blue ocean strategy forget the most important thing for consumers, value creation. It's a blue ocean price cut, one to fight disinterest. There are plenty of gamers that buy the Wii too and a price cut will help entice them to make a purchase.
Nintendo are beginning to hit a point of saturation at $249.99 with their current lineup. Until Wii Vitality hits late next year, they musn't have any other market expanding titles on the way and so a price cut to create more value for those who like the Wii but think it's too expensive is probably their only real option.
Many people say "Oh hey I thought Nintendo would bring out colours first!" These people have to understand that Nintendo have a very market orientated strategy and so they've got market intelligence on what is needed and what would work best. They know what they're doing.
