Wii is cutting their price to accelerate sales through the holidays. It's not really a competitive move. They've got projections to meet, and they want to make sure they meet them.
Although, you have a point, PSP Go is way overpriced. DSi and iPhone are better.
I'm skeptical of Natal as I'm sure Nintendo is as well. It will be interesting to see some more demos later on to see exactly what Microsoft has in mind.
Besides, if Nintendo is still following Disruptive Innovations and Blue Ocean Strategy, they won't want to directly compete with Microsoft. Nintendo's next method of "control" lies in whatever they have planned for the Vitality Sensor.







