If this is true, it would indicate that Nintendo are finally beginning to manage their production issues.

so they claim to have supply issues 'cus demand is so high

then why the hell would they cut the Wii's price with 40%(!!)?

makes no sense
at least not the coming months with smash bros and mario kart still to be released in europe

0_o

 Well Nintendo is a profitfocused company. The Euro is at a high compared to both the Yen and Dollar. If they wanted to icrease production and output more and not channel stuff they could offer a price cut in europe and ship more their while moderately increasing US shipments and still make a decent profit.

My understanding is in Europe that it can be found easily but it still sells the most. If ti was simply matching supply than Japan should of gotten a price cut a while ago. 

How about producing enough console first before cutting prices?

Why would they do it, they are still winning in europe, is it because they want to counter GTA4, GT5P, and MGS4 effect. I mean this pricecut is insane.

This won't happen , because there is no need for it. I would at least wait until sales are half of what they are to even try one of these. It would be such a waste.

I imagine this might happen if they have a massive increase in production simultaneously, or slightly before. Not too likely otherwise.

demand or not, wii sales are still good in Europe, I don't think a price cut would happen

Not really a waste from buyer perspective.

 I'm talking about from a nintendo perspective. Nintendo wants to sell as many wiis as possible. I would think they would try to increase sales when demand is lower than what it is.