The Wii is no longer the lowest price point. It also isn't only not the lowest console anymore, but is only $50.00 cheaper than their competitor's high end consoles.

If its market share is stolen, maybe

No, Nintendo should focus on the software. This will get more gamers interested in the Wii and keep current owners interested in the Wii as well.

Not at all.

Nintendo's strategy has them focusing on a different type of gamer than the PS3/360 systems go for and so far that's working out great for them. As long as MS/Sony don't move into casual / party / exercise / lifestyle games then Nintendo will still be the only game in town for the mass market consumer.

At this point I don't see the PS3 being a threat to the Wii, it's line-up is even more 'core' than the 360's and the 360 has been cheaper than Wii for months now.

If anything is going to hurt Wii it's Natal if it's properly implimented and marketed. But that's a long ways off.

Well it just depends if Nintendo feels threatened by this. And they aren't stupid... they've noticed the Wii hasn't been selling at the same rates that it did. So if they feel this could affect their sales of the Wii then they aren't going to lay back and let it happen.

Nintendo is pretty confident that a lack of software is their problem. What exactly does a price cut do, let the buyer keep more money on hand so he/she can spend it on games they don't want?

If gamers liked the games the Wii already has, then they would've bought one by now; if they don't, they're not going to buy a Wii when Nintendo cuts the price.

But these guidelines dont apply to the ps3?

Nintendo will go with new colors and a value-added change to its bundle before resorting to a price cut.

I think they'll cut after the start of their next fiscal year, especially if they fail to meet their projections.