Once again, Wii is pretty much selling as fast, if not more than the PS2 at its current price, making them a large profit while at it also.

So once again, why do they need to drop the price when people are willing to pay and buy in larger masses at the current price its set at?

There are several reasons why Nintendo should not do pricecut at least outside of japan.
All major markets currency against the yen is actually getting bigger especially in the U.K where the strength of the pound is dropping.Meaning the reduce cost of manufacturing is being neutralized by the exchange rate. Being that be the case and Nintendo getting chunk of it profit from consoles and not having other avenues to gain profit since they are only a gaming company Nintendo. cannot support a console that loses money for extended period of time like Microsoft or Sony.

That's not really the case for Japan which seem to be the topic Iwata was talking about in the article though....

Yes imho Nintendo uses same strategy of selling product as apple does.

Which is big part of reason why i hate them.

I find funny how you feel Nintendo is doing something morally wrong, when it's just they are better at business than either MS or Sony.

They are giving to the market what the market wants. 

You omitted the rest the interview. He's talking about the apathy towards videogaming that is happening in japan. A price cut MAY increase sales a bit but won't get the market excited like before.

And no offense but he knows more about the videogame market than you.

Wii is already cheaper than PS3 in Japan. Price cut in Japan won't suddenly excite the consumers.

And I agree with what Bobbuffalo said.

That's true... and Nintendo will make twice as much profit in this single fiscal year than Sony did in six years of total PS2 dominance of the market. Remember, Nintendo's goal is to make money. They don't care about raw unit sales or "winning" marketshare. They try to turn a profit, and in this regard Nintendo does better than every other gaming company in the world combined.

Now you're certainly free to disagree with their strategy, but I think it's pretty easy to understand.

Gosh why can't he just say "we're not going to drop the price because all your base are belong to us" or something. I mean why drop the price when demand for the product is so bloody high that the product is literally ravaging the competition.

 Funny because that is exactly the attitude that gave MS so much hate among the software people.

They took advantage of their position for years and made a fortune selling their products at expensive prices.

And when Apple finally starts to get their thing together they are surprised that so many software and hardware folks become Apple fanatics...