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Nintendo can surely afford a price cut in the west at the moment with the falling yen. The question is, would they want to? Losing $50 potential income per unit or more is significant cash to throw away. The key would be how many more units they would sell. If at the current price they would sell 5 million more Wii U's through the end of the year and price drop would bump it to 6, I doubt they would do it. But if the difference was 3 million and 7 million, surely they would.

I think we'll be able to tell if they are going to do it once Pikmin 3 launches. If that, and the following software, bumps sales of Wii U's to more respectable levels, they may stay the course. If sales stay awful, a price cut is coming.