The DSi is launching in Japan for $20 more than the DS Lite.
The DS Lite launched at ¥16,800, which translates at present to $170.57 USD.
The DSi is going to launch at ¥18,900, translating at present to $191.86 USD.
Additionally, people paid as much as ¥40,000 for the DS Lite when it launched (over $400 USD).
In light of all this, I highly doubt price will be a concern. The questions are (1) is the market too saturated already, and (2) will people see the DSi as being worth buying another DS?
I believe (1) the market is pretty heavily saturated, but only about 1/6 of Japan's total population currently owns a DS, so there's still an enormous amount of people still available, and (2) I'm going to be buying a DSi even though I already own three DS Lites between my wife and me. And I'm a western gamer, in a culture that sees the DS mostly as meant for kids. Japan doesn't look at it that way.
Thus said, I wholeheartedly believe almost every single one of you is underestimating the DSi's potential. I don't necessarily believe these predictions are all wrong, but I believe they very possibly could be.
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