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In Europe I think the arcade is already cheaper and the Pro is almost the same price. Hasn't helped MS slow Wii down any.

I think Nintendo will totally ignore what Sony/MS do pricing-wise. If they want to undercut the Wii let them. Unlike Leo-J I doubt a $250 PS3 would dampen Wii sales one bit.

Nintendo will first bring out coloured units instead of a price cut (which let's face it, will work to boost sales) and only cut the price once supply has outstripped demand for a while and that sure as heck won't be this year.