Price cut for the Wii in march 2010.
Let's make a bet. Whoever loses, claims gayness in the sig.

Competing or not competing with SONY/MS is not necessarily the point. Nintendo still has to compete with economics. If people don't have enough spending money to buy the Wii at its current price it can make sense economically to cut the price, thus paving the way for more profits. More consoles in peoples hands make more money for Nintendo and developers.

I think I agree with Demotruk on this one. A price cut should be reserved for a last resort.

Nintendo is "damned if they do, damned if they don't" with the people you're talking about.  So that doesn't really matter.

Blue Ocean Strategy has an entire chapter dedicated to getting the right price. I'm not kidding here, it goes on for about 20 or 30 pages on the strategies involved in nailing the mass market price point for your product's value, and the caveats of what that price will entail. The most important point it makes is that price cuts indicate a drop in the value of your product to consumers. You never, ever lower the perceived value of a Blue Ocean product. Only when it has entered into a Red Ocean due to direct competition does that become an issue (at which point smart businesses enter a new Blue Ocean to sidestep the newly created Red Ocean). Instead, you should augment that value if possible. Video game systems conveniently allow for this by way of "killer apps", or genuine system-selling software.

While I don't entirely disagree with your sentiments this isn't the same thing as say a wine going BOS. The Wii is a medium it's the software that really brings out the best of the BoS. Having a classic controller would limit the direction of BOS. So the Wiiremote not the Wii is the gate to the BOS. It's the software that are the ships in this new green pastures.

I say when the Wii successor comes out is when a price cut is most likely, with the successor costing $200-$250.

That's interesting. So, are bundles a possibility for Nintendo? In some way is like lowering the perceived value of the product, isn't it? Say, $250 for the Wii with New SMB, but once the bundle is over no one will want to pay 250 for the Wii alone.

Bundles are possible, but the most important thing by a long shot will always be the available games library.

I agree, and we can expect this around the year 2016. :)