With the Microsoft's Xbox 360 and Sony's PlayStation 3 fighting it out at the $299 price point, many industry insiders are wondering what Nintendo will do to maintain its gargantuan lead with its Wii console. Let's face it, at $249 the Wii seems like a rip off compared to its competitors. Although it offers a unique experience with its motion controls, its raw horsepower and multimedia capabilities are considerably behind the other two consoles.EEDAR analyst Jesse Divnich believes that Nintendo needs to drop its price to $199. He said:

"Essentially, Nintendo stole potential PlayStation 3 and Xbox 360 consumers from this hardware lifecycle three years in advance.

In order to maintain this position Nintendo should drop their Wii console down to $199, not because the current Xbox 360 or PlayStation 3 pricing structure poses a threat; rather, because they will eventually pose a threat. Nintendo's strategy should be to capture as many consumer dollars as possible while their competitors are still weak in their offerings to the casual audience and price sensitive consumers."

It's a sensible argument, but some would say that at $50 price cut isn't enough. Since the Nintendo Wii was the only home console this generation sold at a profitable price from the get go, surely a more drastic cut can be made three years later, right? While casual consumers can be swayed by a $100 difference, any shopper with a modicum of console knowledge can see that you are getting more for your money with the PlayStation 3 or Xbox 360.

What do you think Nintendo has to due to compete with the recent price cuts? Is reducing the Wii's price to $199 enough? How about $149? Or is Nintendo's lead so big that it doesn't even matter? Leave a comment and let me know (please)!