They probably could if all they had to do was manufacture the Wii console alone and sell it directly to customers themselves.... Controllers, packing, shipping, store/distributor cut and more importantly marketing however will not let them do that.
Looking at their fiscal reports can tell you easily that they would probably be making a loss if they dropped it below $150 (though it is hard to tell with the DS being tangled in there too)
Come to think of it, why doesn't anyone (other than the odd forum poster) ever say things like this about the DS? The Wii has been on the market 2 years less than the DS, but has had more money cut off it's RRP in percentage terms than the DS has (if you factor in the DSi then the DS has gone up in price.... DS/DSlite alone though I think have only been cut by $10? (it's only £10 less here in the UK anyway)
