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He's not asking about when a price drop will occur, just if it would increase demand significantly. I think it would, $250US is only cheap relative to the 360 and PS3. I can't imagine a lower-income household currently viewing the Wii as some sort of impulse buy, that's still a huge demographic that won't be tapped till the end of the life cycle when it's near $100 with a boatload of cheap good games.

Just take a look at the PS2, the majority of sales are after it dropped below $200, and at $130 there's still a lot of buyers who aren't touching the next-gen.