Next Round of Price Cuts

[Bodhesatva]

Nintendo has Microsoft and Sony so totally pwned in this category.

I want to point something out, just to make sure people are clear how strong a position Nintendo is in: Nintendo could almost certainly drop the price of the Wii to 99 dollars right now, and they would still be losing less money per Wii than Sony is per PS3. 

Put more generally, the Wii is the only system that launched for a profit, and now is being sold for approximately 60-75 dollars in profit per console in the US according to recent estimates. By contrast, the PS3 was sold for a 200 dollar loss when it launched at the same time, and has since then seen 200 dollars cut off that already too-low price.  

Microsoft is in the middle, and does have some flexibility. Still, it's amazing how strong a position Nintendo is: they could easily do a drastic price cut any time they wanted, and it's quite possible the Wii will be the first system to sell for 79.99 when it's still going strong 4+ years from now.