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@KBG29:
Beware though! There are Pachter followers out there that strongly believe that because the dollar is too weak, Nintendo divert its consoles to other regions.
So if you are to believe them, there's no chance Nintendo will drop the price on the Wii in NA, as long as the Euro is so strong against the dollar. Also, they won't increase shipment to NA according to these people, as they already are shipping below 50 % of their production to NA, and even though it's more than other regions, it doesn't matter because it doesn't count (see their unbeatable logic?).

For the other price drops, I can't tell you what they think. Logic would make them believe that Sony and MS are doing the same, and diverting their shipment to Europe to make more profit. But given the state of their logic, I still wonder.

So beware these people, they will flame you.

The answer to your question is more complicated than you think.
When a console goes beyond the price of the Wii, that doesn't mean it will sell more, as the Wii proved. If people still see more value in the Wii, the effect will be that consumers will believe the other products are failures and are victim of fire sales.