It doesn't make sense to make a price cut while demand is high, when we start to see Wii's avaliable each day, then Nintendo will cut a price.

Let's compare the Wii to the DS. The DS phat had one price drop in August 2005 because they were clearing stock and replacing it with the DS lite. And it never got another price drop ever since! That's almost 3 years in a row and still no new price cut in sight!

There will be no Wii price drop before the DS drops in price. Wii might drop in price after both xbox360 and PS3 will reach massmarket price, no sooner then that. Christmas 2009 at the earliest. Possibly 2010.

When it stops selling out, basically. Nintendo will drop the price by $50, and bam, they'll be flying off the shelves faster than you can blink again.

The Wii will see a price cut when consoles start staying on store shelves for more than a few days. Wether that will be due to increased supply, or decreasing demand (at 250), only time will tell.

This is actually a very complicated question in the case of the Wii, because it's still selling out. The question of "when to cut the price" is inextricably linked to the question of "when and by how much to increase production". Therefore, there's a two dimensional decision to be made here.

I suspect that the criteria for making it depend on factors we don't know. From the top of my mind, two of the factors are:

1- What's Nintendo's aim right now? Is it to maximize profit? Or is it to try to inflict as much damage as possible to their competitors, with the "profit" goal to become more important only later in the generation?

2- What is the current cost of production?

Until we have at least approximate answers to one or both of these questions, I believe we can't predict price cuts. At least I can't! But I can hypothesize based on those 2 questions:

1- If Nintendo's goal is just to maximize profit, I believe they should just increase production for now, and only cut prices when demand starts to decline significantly. If they are more intent on crushing their competition, then perhaps they should do both things this year.

2- If the current cost of production is much smaller than the average amount they get from customers (it varies by territory), then they can increase production by quite a bit, while maintaining the option of doing a significant price cut if demand slows down. This would be a good situation to be in, since it would imply that they can keep making big profits while stepping on the competition's toes as much as possible.

Wii proably see more colors before it gets a price cuts, some ppl still waiting for their favorite colors to come out :) Heck I might get the Black wii its just soo damn sleek and sexy !

Nintendo is producing more than anyone else. They can't produce enough of anything because their product is very popular, not because they somehow have lesser production capacities than other companies, or because their executives are inept. They are simply at the maximum limit of production that efficiency will allow, given their current facilities. Far more units per month than say, Sony or Microsoft have produced this or any generation.

When will the Wii see a price cut?

"The moment it isn't sold out anymore" + X

Hard to say. Wii's still selling out worldwide on a weekly basis, so it wouldn't make any sense at all for Nintendo to cut prices. Maybe when production's increased and they're finally able to meet demand. If they can do that. :p It wouldn't make sense to lower the price even IF Xbox 360 and PS3 sold at around the same price, if they still sold every unit they put out there.

When sales go down then they'll have a price cut, by the look of things it'll be a long time till theres a wii price cut.