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Yup ... the price cut can be tied to the economy too.

Since the Wii is a "blue ocean" product as Malstrom keeps banging away at ... that also means different rules for pricing.

In a recession I really believe casual consumers are more likely to cut back on things like video games. The media/Dr. Phil are telling casual shoppers to be more careful spending, to only look for bargains, etc. etc. 

Hardcore players will still find a way to keep spending on core gaming. In fact they may even tend to play more games in times when they're depressed/job less/etc. I think the PS3/360 are benefitting from that whereas the Wii is being hurt more by the recession than those two platforms are.

The DS has been able to weather the effects of the recession better because of the introduction of the DSi model, which has some DS phat/lite owners buying another DS all over again inflating their hardware number IMO.