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The XB1 price cut is to stay competitive with the PS4, not the Wii U. There really isn't much of an overlap in audience between Wii U and XB1. There isn't a lot of direct competition between the two. Those who do like both will probably buy both anyway.

The Wii U has plenty of struggles going forward, but the price of the XB1 this holiday season probably isn't one of them.