Sorry Mr. Analyst, but Wii will not have a price cut

From Industrygamers.com:

“For the Wii, we do expect a price cut in 2009 or some type of re-bundling, which may add a AAA title, such as Super Mario Galaxy, and keep the $249 price point. One element is clear, for the Wii to hit Nintendo’s fiscal year estimates, they must either cut the price, introduce a new hardware SKU, or lower fiscal year forecasts. The price cut or a new hardware SKU, which will likely include additional game bundling, are the most likely,” he told us. 

Price cuts are a Red Ocean technique. This doesn’t mean the Wii will always be $249. It means that it will seek to hold its value as long as possible or surpass it with more games. Consider that the DSi costs more than the DS Lite and that has not affected its sales.

Most consoles cannot get away from not cutting the price because they are stuck in a Red Ocean. A Red Ocean means that the product is sharing its value with other product out there. Aside from right after launch, DS has never had a price cut.

Nintendo is waiting for more games to come out and then, perhaps, time a colored Wii to launch alongside such game. This is happening already in Japan.