Nintendo should just crush the other two just for the sake of it (more than they currently are).

A billion dollars is enough to give away, for free, 4 Million $250 consoles or make a $100 loss on 10 Million consoles.

As Shao Khan would say, FINISH THEM!

If they are not going to do that they should at least play dirty. A few recommendations.

1. Start rumors that the other two are going to have another price drop again shortly.
2. Buy a few million of the competition's consoles and then return them the following month.
3. Leak impressive specs of the 'soon to be released' imaginary Wii-HD.

The more I look at the plus & minus of a price cut, couple with a recent interview by The Reginator, I can see Nintendo point that it's software that will drive Wii sales, not a price cut.

But, the one thing I WOULD LOVE for analyst and the like to stop saying is the "Wii Audience" as if it's an audience of sheep that have no clue what they want, unless it's cheap, and has carnival in the name.

Microsoft & Sony want the same thing Ninty does and thats to sale. They could give a rat's ass about rather or not someones a traditional gamer, or mainstream, it's "what can I do to get you to buy my product". Thats it. If Sony & Microsoft don't offer enough entertaining content for both the traditional & mainstream gamer then their price cuts will be as effective as a $199 Arcade, or a $99 cube...

Maybe Nintendo will cut the price of the Wii right before Microsoft's "Project Natal" comes out.

wii and ds always dominate even with the 199 arcade for a year now 360 has been outsold everytime...ps3 and 360 cobined cannot sell as much as wii does....

but if they cut the price regardless than it will feel like ps3 and elite were always overpriced. haha and it will sell even more but i think it would be smarter to not cut the price....

Two things

First, Nintendo is in a Blue Ocean. The tagline of the book is "Make your competition irrelevant." Nintendo does not need to compete with them. It would only put them in a Red Ocean and hurt what they have done so far.

Second, Nintendo has shown that software is the best way to push the hardware. With Moster Hunter 3 and Wii Sports Resort, hardware was increased for the weeks of their release. The same effect could be archived by a price cut, but it would not be worth it. Nintendo could instead make more compelling software and keep the price the same. You can make software and continue to at least get little boost. You can do the same with a price cut, but you can only cut price for so long.

@ BOLD: And thats the thing, from a business perspective revenue is down for both Sony & Microsoft games division. Sony had to cut price in the hopes that it's revenue making products, games & accessories, would rise. The thing that Sony has that Microsoft didn't have at it's current price point is enough noteworthy exclusive content to make a difference. This is why I think the Sony price cut tail will be longer then Microsoft's price cut tail.