Look, they could not profit if they dropped the price $80.
Lets look at the last completed fiscal year Nintendo had..... in rough terms they made $5billion... and sold 25 million Wii consoles.
If we assume (probably wrongly so) that the Wii and DS each make half of that profit for Nintendo (I suspect the DS will be making more than half, but I can be biased against the Wii and still prove my point)
So $2.5 billion, for 25 million units (and the games and accessories)
divide 25 million into $2.5 billion and you get $100. the price of the Wii during that time was $250, so taking $100 off would be making it an RRP of $150.
So if the Wii was $150 Nintendo would be making zero money from it at all, it would be breaking even.... of course they are surely making lots and lots of profit from the software and perepherals, even if overall they are break even (that is how it goes, software and additionals always make the most profit) which means that they would actually be making a loss per hardware unit they sold from the store (but on average making that loss back when people bought more games and perepherals)
That is simple Maths... we can debate error margins all we want, there is no way Nintendo would be making a profit on the Wii as a business if they dropped it to anywhere near $80.... hell they would probably be making an overall loss (ie eating into DS profit too)
