The Wii holds the ace cards, IMHO. No price cuts thus far, so if sales start going down at all, then can knock a bit off the price and up they go again. I'd imagine production costs for the Wii have come down a fair bit from the start, so Nintendo would still be making a profit on them even after a price cut.
WiiFit is going to be huge huge huge in America, if marketed correctly (which I'd imagine it would be) That's going to help the Wii a lot.
Also different models of the Wii could come into production (different colours, DVD player capability, HDD etc) which will help sales.
They really do need to sort out the supply problem though. I'd imagine people are going to get fed up of waiting before long and give up on it. The Wii buzz isn't going to be around forever and I'd imagine Microsoft / Sony are trying their very best to bring their own control system / games out which will be in direct competition to the Wii.
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