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Both the Wii and XBox 360 may see price reductions ...

I would imagine the XBox 360 could see a $100 price reduction in the next couple of months whereas I wouldn't expect Nintendo to reduce the price of the Wii by more than $50 and I wouldn't expect a price reduction until November; by reducing the price on the one year aniversary (or potentially bundling another Wiimote/nunchuck with the system) and establishing a strong supply Nintendo can ensure that the Wii is the hot holiday product.

Nintendo may not need to reduce the price to improve sales, but they may reduce the price to maintain momentium and encourage software sales.