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Nintendo can easily afford a pricecut( i mean come on, it's the same price as the new X360 Arcade...) but if and only if they become unhappy about the sales.

For example they won't do a $50 pricecut if sales are still okay and it only gives a modest boost, because they will miss out on $50 on every Wii they would have sold anyway. It's the same thing for PS3 really, Sony could afford a small pricecut but they won't because they are finally making a small profit on the console.