We know that Sony may reduce the price of the PS3 in March. Its discussed here..

http://news.vgchartz.com/news.php?id=2579

Now what are the chances of the Wii having a price cut just to get one up on Sony. If the Wii was cut to $200 and a game included(maybe Wii Sports Resort as well as Wii Sports) then  the price cut by Sony night not get the reaction Sony wants. I know Nintendo is struggling to keep up with making the Wii fast enough but this may make the Wii even more popular(if its possible) and make the PS3 cut null and void so to speak. What do you think?

I think it would be a great idea and one Nintendo should really consider. It will take some sales from the PS3 .Sales it really really needs to stimulate a console that at the moment is losing its way. Only problem for Nintendo is the lost revenue on console sales. But I think it would be worth it.

Well, the thing is, not alot of people are chosing between those 2 consoles. They don't think should I get a Wii or a PS3. PS3 demand will rise with a price cut, but it will have no effect on the demand for Wii. The only thing that will make the Wii drop in price, is a natural fall in demand, which I don't see happening before years from now.

Nintendo's concern is Nintendo, not Sony. They're not going to reduce a fifth of their revenue on a console that sells as fast as they can make it just because another console might start to sell a few more units.

When a Price cut comes to the Wii, it will be because of Wii sales, not PS3 or 360 sales.

The Wii is certainly due for a price cut/remodel in Japan soon. I rate the chances of this occurring in the West at some point next year, although I doubt it will happen as early as March. More likely around the end of the year in time for the holiday boost.

Zero chance.

At this rate, it will be 2010 before the first "real" price cut for the Wii hits - until then its bundle world.

In Australia (todays catalog), you can get a Wii + WiiSports + 2 games (Sonic + Sambo De Amigo) for the same price that the Wii launched at. So two extra games for free. Not a bad deal...

Exactly.

Also, let's not forget the interview where Iwata expressed a certain amount of personal disagreement with the "conventional" price-cutting business model for game consoles. I believe it is difficult to decipher exactly what he means by that (i.e., if and/or to what extent he might use his position to delay price cuts under circumstances when others would be inclined to cut),  but when considered along with the theory that Nintendo is not concerned with competitors' sales, at the very least I think it is safe to assume that Nintendo will maintain its current pricing structure until there is evidence of a dramatic shift in Wii sales.

Not a chance. there's a chance they might roll out some new colours for the Wii in March.

With current selling speed, zero. If sales start to drop dramatically, they will lower the price.

What about stealing Sony's thunder. Don't you think Nintendo would like to slow any momentum Sony will get. And they will get momentum even if its minor.

No, Nintendo is not that petty.

They don't care how well the PS3 sells. It's not going to affect the Wii in any way, a price cut would probably achieve nothing because $250 is pretty damned cheap and since neither the PS3 nor the 360 is coming close to Wii sales, all it would be doing is lowering revenue.

The only time they would do this is:

1) If Wii sales start drying up
2) If the PS3 (or 360 for that matter) begins to outsell the Wii on a weekly basis (ie not just because of short-lived game boosts)