Theres no price cut in this fiscal year, maybe even 4 years says Iwata

[shams]

One of the "advantages" of releasing expensive (higher spec'd) hardware, is you can get more significant cost reductions sooner - and then pass them onto consumers.

Because the Wii is "simpler" and "cheaper", the cost reductions over time are smaller. But since its cheaper, it starts in a more casual price bracket anyway.