I'm not implying you are, just I like to go by the often the simplest answer is the answer and the fact that if there was a price cut (even just an Australia one) is would be posted on every gaming website by now.

Yeah I know what you mean, I was surprised when I saw the price tags, I'm guessing like mentioned above it's to do with the exchange rates at the moment.

It can't be the currency exchange for 2 reasons.

1 - Nintendo is Japanese, they don't really care about the US dollar
and
2 - The U.S. dollar is falling against all currencies, sorry Sham it's not your dollar that's risen in value, it's the american $ that's taking a beaten. Here in Canada where almost at par (used to be 70 cents 2 years ago), again it's not cause the canadian dollar is doing great, it's just cause the american economy is going in the pooper.

Our dollar has risen to (almost?) record levels against the yen. It used to trade in the 80-90 range, last I looked it was around 110.

There was no question that there is "profit taking" happening in places like Australia. Based on the current yen exchange rate, our Wii is even less competitive than the US price!

They started the prices higher than normal ($399 is a good price point - just like $999 was the PS3 price point). It gives them easy room to move down if needed.

EDIT - AU dollar dropped recently (last week?), value has more normalised now. Back to 101 yen (was around 108).

Not sure if this pic/link will work...

Also want to say, that I can confirm the drop in price for the Wii here in Ozland.

Dropped into an EB here, and there is a new "package" for the Wii (new box/layout). The offer I saw was:

$428AU - Wii Sports package PLUS Sims 2:Pets - free. Picture on the front of the box now focuses more on the controller, and it also makes it clearer than you get Wii Sports included - for free.

The PS3 bundle is also out - $1029(?) gets you a PS3 60Gig, 2 controllers + Resistance PLUS Motorstorm. Claims to be approx $1300 value.

There is also a DS bundle - DSLite + Spongebob game + accessories (not sure what) for about $200. 

Yeah I seen RE4 pack in game for $388 in a few stores too. (Useually $398 just for the Wii).

So I guess it's partly got to do with the exchange rate.

Although, Australian retails make a hell of a lot more mark up on products then what it is in the US.

So, when doing an in store sale, they are still able to make good profit off of it.

ie: They currently purchase a Wii's for $270 AUS - Sell for $348 (on special) or $388 with pack in game.

That's practically a 30% markup just for the games console.... the games are even worse! That's why I started my own business. (Personal & Household products) because what I buy my stuff for and what I sell it for is an absolute laugh! Some items are like 400% markup!

ha! I haven't bought a DS game here in Australia for a long time. It didn't take me long to realise that it was just throwing money away.

Wii however, is region locked and until I get a mod chip (it's a matter of when, not if) I will have to pay the extra money.  

Listen every1 for a cheap wii go on www.gamestation.co.uk, they are doing a 1 day only offer for a brand new wii for £169, which is a saving of a tenner

Honestly, do what I should have done.

Import your Wii from America.