Here is latest interview : http://www.gamasutra.com/php-bin/news_index.php?story=23132

He says : " A price cut in a difficult economy cannot really excite the market and drives up sales"

So reducing price when customers have less money to spend is a bad idea it seems............

I think he is looking at the principles behind the decision not the immediate details. Notice that he said "excite the market" which would "drive up sales." In a weakened economy people are scared to spend ANY money. And are quicker to just deny a product all together than to buy at any particular price. So they have to "excite" the purchase in other ways than money. Even though people are afraid to spend money, they still are susceptible to fun, peer pressure, emotion, relaxation, happiness, etc. It makes them overlook the money, which would supercede the need for a price cut.  This seems to be the case with Wii as well, and until it looks like the "price" is causing an issue, I don't think that they will do much with it.

What I believe he's saying is that if people are determined to save money dropping the price of your console won't change that (much).

But if you get them excited about the console (again) then they'll be willing to spend the money to get it.

Frankly it's not like the Wii is losing sales to the cheaper 360, it's losing them to the more expensive PS3.

Why drop the price when your already selling well over double the competition?

So every retailer and manufacturer which is exactly doing that is wrong ?
Makes you wonder if he's thinking his product are like Apple products and the cool factor will oversee the price.

Except theres a big difference between his product and Mac products.

His product will easily have the majority of the market. 

Once again, theres no need to drop the price consider more people are willing to buy it at what its price at already.

I've been saying this for months. I think you missed my comments on this frame of mind.

cool factor and other factors that appeal more to the human psyche. yeah. Its like when a poor person is addicted to drugs. Would they be poor if they weren't addicted to drugs? The Wii isn't an addiction, but they are appealing to different elements of consumer's psychology.

Why do you think Sony isn't dropping their price everytime someone thinks they should? Every somewhat successful company knows that there is a balance to these things. Marketing is just one way to get into the psychology of people. I could have a really cheap good product that only one person owns and it "could" never get bought by anyone else, but if designed right, marketed right, and fed right, it can be owned by all. Also a price cut alone is psychological. It may mean that the product is outdated or in less demand. With a Wii price cut, perhaps suddenly the PS3 would look like a newer machine and more "worth" the extra money.

That is one reason that Sony kept their price so high starting out and tried to create an image of "eliteness." But they didn't listen to the market at the time. They let their own preferences and creative tunnel vision blind them to market trends. Nintendo on the other hand opened their mind to many possibilities which is why their product ended up being so radically different than the other two.

It isn't about price or power or elitism right now or ever, it is about what the market is set for and what people need and want psychologically.

With 70% marketshare the PS2 actually dropped prices quite often last gen, letting the customers benefit from reduced manufacturing costs. The only reason the PS3 isn't following suit is because Sony is bleeding money ( and dropping prices when you still make a profit after the price drops won't necessary affect your profit so much because you will sell more, dropping prices when you loose money amplify the loss a lot).
The Wii manufacturing costs have gone down quite a bit but with a lower marketshare the Wii price hasn't moved at all...

I just don't think the majority of Wii owners are Nintendo fanatics the way Apple customers are....