No they are not.

Hold up right there. You've said enough and you are wrong.

Wii= 48% of market share

Ipod = 80% of market share

The Wii will have a price cut just like any product, it's that special.

If they were able to reduce their hardware costs, it is possible their profit/unit can stay the same.  The only question is whether they forcast their projections with a price cut in mind.

And with a price cut, the cost of a Wii + WiiFit bundle goes down from $330 to $280, which makes it that much more attractive to potential buyers.

Much of the core audience sees the Wii as a poor subsititute for a PS3 or a 360. The expanded audience sees the 360 and PS3 in the same way, the only real expanded audience game they have is Guitar Hero/Rock Band.

What makes you think Nintendo losing more profits with a $50 price cut? I can say they will make more profits in the long run with extra millions sold because of the price cuts which leads to more software, controllers, accessories sold which leads to more profits for Nintendo. Moreover, by increasing the console marketshare makes the Wii even more appealing to third parties which leads to more software for the Wii which leads to more sales of the Wii.

I see you are capable of assertion. Well done.

What exactly is your point regarding marketshare? Your own definitions of the market are implicit in each, you make the implicit assumption that Wii competes directly with the other two consoles in order to claim that they are competing directly with the other two consoles.

The only console I can think of that had no competition is the PS2 and it had price drops. So, you need to come up with another excuse.

Seriously, did you guys think the Wii would stay at $250 forever? I can't believe people are actually complaining of a product selling for cheaper.

They compete directly for the core market, not that Nintendo puts as much effort into it. However, do you really think the audience that queued up or paid ridiculous ebay prices to be able to play Wii Sports view the PS3 or 360 as a substitute? If they did, surely the Arcade would be selling better than Wii now, it's a much cheaper substitute, after all.