Price Cuts Aren't Coming to Nintendo

Nintendo can be a persistent bunch when it comes to marketing and pricing of the Wii. First they praise it for its innovation, which it definitely has. They price it below all competitors at launch. They have been rumored as to holding back production and not meeting demand to make its appeal higher and harder to get while maintaining it success over time and not dying in one hit. They announce that it now takes $50 less to make. The final straw was when they announced no price cut and they will keep the price at $250.

What is wrong with this?

-Nintendo is almost 3 years into the Wii life cycle and hasn't had a price cut. All the other ones have had at least 1, sometimes 2.

-Next is that Nintendo is the only one making profit on every one of their consoles sold. They started out making around $4-$6 on every console and now that it costs less to make so they're getting about $55 on every console. The other companies had to sell a lot more to make a profit and Sony has made nothing selling consoles. Nintendo doesn't have a loss to make up so there is no reason to keep the price the same.

-For most people, the Wii was something to play every now and then, mostly at someones house, and was really and impulse buy to those who don't game a lot. With the Wii being out for almost 3 years now, the market is almost saturated for people who are going to pay $250 for something they won't use all the time. Also with the economy they way it is, people are less likely to buy something that $250 that they can buy at a friends house.

-Information about Sony's PS3 got leaked this weak stating that it only costs them around $240 to make a PS3. With the power in that, Nintendo should have no problem making their system for between $100-$125.

With all these reasons, there is no excuse for Nintendo to not drop the price. I think it would be beneficial for Nintendo to drop the price to $200 or even better, $150, to sell more Wii's. Nintendo really started the idea of selling the console at a loss and make money on the games with the NES and this seems to be the exact opposite of what they used to do. Selling the console at a loss makes more people buy them because the price will be really cheap and then they will be enticed to buy games, which is where Nintendo should make their money.