Nintendo should push as many Wiis as they can as fast as they can to make the Wii more appealing to third party developers. Even though Nintendo has almost half of the marketshare this generation many third parties are still hesitant to push high quality titles on it. With the Wii pushing sales even more ahead than the HD consoles than past holidays it just makes the Wii more enticing.

And to those who say the Wii is not competing with the HD consoles are dead wrong. There is a lot of market overlap according to NPD http://www.joystiq.com/2009/09/15/npd-provides-stats-on-game-promotion-platform-cross-ownership/

There is no way Nintendo will meet their sales projections without a price cut and in the long run I believe Nintendo will make an even bigger profit. Why? More consoles sold correlates with more software and accessories sold. And software and accessories sold = more profit for Nintendo. The most important thing for Nintendo is getting more third party love for the Wii and publishers love price cuts on hardware.

Just imagine the Wii selling 70% of this generations' hardware this holiday, that would convice more third party developers to drop more and better games for the Wii than otherwise would have if it sold 40%.

depends on who buys them,
it doesn't matter for third party it wii have 100 million user base if the user based on cares about wii fit.
PSP even lowest userbase have games like crisis core , dissidia selling tons impressive considering the piracy is high.
and the wii will never get over 70%-

If they haven't, they should add Wii Motion Plus to all Wii's with that $50 price cut.

Competition is a side effect of the industry and direction. It is a Blue Ocean within a Red Ocean. Though almost 100% the company that maintains the Blue Ocean will end up engulfing the Red Ocean. Thus changing the landscape/water ways of the industry forever. It's pretty clear that we are already seeing this effect with Sony Wand and Natal and a shift to Console Entertainment Software(insert obligatory console insult here about PC already going through this state of growth here). I do want to stress that it's Software Entertainment from the idea of Games.

There is indeed a correct idea in thinking that reduction of price is a good idea. By no means do I think it's a bad idea. PC Computers have had their price significantly reduced since my first Pentium computer($1400 for a 266mhz, 64Mb Ram) to my current computer($250 Duo 2.0, 2gb ram + 512mb gfx card, from 2 years ago). These price drops however are not a move in competition, but due to economic and manufacture reasons.

The nature of consoles have been a solitary design. The Console sits alone as a single machine with different values of the customers. Maybe a price cut is in order due to reduced manufacturing costs, but maybe it's not due to that fact it is still the same machine. As mentioned above the Blue Ocean when kept on track will engulf the Red Ocean. Much like when Sony changed the industry and Nintendo before it. It's about the right time now. A cut in price will only slow down the maturity of the industry.

3rd parties are coming to the Wii. But you have to realize that they are not going to be making the next great FPS or racing games. Successful 3rd parties are primarily following the patterns of the market that Nintendo has created. Hence, EA Active, Game Party, and Carnival Games are all million plus sellers.

As time passes, I think Nintendo is hoping that third parties will take the blue ocean approach to software as they have. That is, stop copying/competing and make something new.

As for a price cut, I'm not objected to it. But I think the method of the rumored price cut disproves it's existence. Just cutting 50 dollars seems like a cheap move for Nintendo. New bundles and colors would be nice, but who knows if that's' ever coming to NA.

A price cut will not push significantly more sales this holiday than the holiday season itself will. Consoles always sell out during the holiday season, and the Wii will be no different this year. Nintendo cannot sell a console that has not been built, so a price cut will not cause them to sell more. The only thing it can do is sell them a little faster, which would only bring on more accusations of engineering shortages: a game Nintendo does not play.

If a 3rd party developer isn't interested when a console is at 53 million, then the developer just isn't going to be interested.

If the Wii having over 48% of the market share isn't enough to make it appealing to third party developers as it is, then I don't see the situation changing even if there was a price cut.