[qoute]
If the 360 hits $250-$300 (possible with drop in production costs) the Wii will be in trouble if they dont do something drastic. If the other consoles decide to compete at the price level, Nintendo will probably release an upgraded Wii with better capability (upgraded not entirely new). By that time, hardware will have gotten cheap enough for them to make a console powerful enough to compete with the 360 & PS3 at the $250 price point. All games designed on the new system should also play on the old with a simple scaling in graphics. Since they will probably have most developers working with them this would essentially seal the generation in their favor and give them a huge boost next generation.[/qoute]
Not going to happen. People said the said thing about the DS. 2 year lifespan, not powerful to compete with the competition, place holder until the real system arrives, etc. The Wii is making money big time. It's going to pass Gamecube lifetime sales in within 2 years of being released. 3rd party support is picking up and the Wii could be the dominant (PS2 like) platform by Christmas. They aren't just going to drop it, that would make consumers that bought the wii (which by now is a lot) very upset. That would make 3rd parties upset, because they have been moving all their support over and then Nintendo is going to say, "Ha, ha just joking, we don't want you to support that platform, support this new HD platform of ours." Which at the time of release will be 20 M units behind the Xbox 360 and 10 M behind the PS3.
Notwithstanding the Wii is a monster now. Hypothetically if the Xbox 360 (Pro) dropped to $250 tomorrow and Nintendo made no price changes to the wii, 360 would probably win the war. But the wii wouldn't be performing at PS3 like levels just because their is an alternative. It does some things completely different than the 360, which is why the market has responded so positively to it.
