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The weakening yen should make it easier for them to cut the price. I predict either one huge price reduction in August-September (like $80 ala the 3DS), or a more phased approach, $50 reduction in the spring (basic phased out), followed by another $20-$30 reduction in November.

The system is way too expensive right now though, it's even keeping away Nintendo fans IMO. They need to get the Nintendo Land bundle down to $250, PS3/360 are eating their lunch completely right now.