Since release, the Wii has been the most price-competitive modern console available. Its success has largely been attributed to price, especially in the first year, when the Xbox 360 and PlayStation 3 were far more expensive. Now in late 2009, the picture has changed.
The PS3 has finally fallen below the $300 mark and Microsoft has managed to dip below Nintendo in terms of pricing on the 360 Arcade. Clearly, one of the biggest advantages Nintendo had is drying up -- a major concern, especially as the next holiday season approaches. While nothing is official yet, there are rumors that a price drop may be due before the end of the year.
Nintendo's official stance is that no price drop is planned, but several factors have to be considered. For starters, falling sales combined with a renewed marketing vigor from Sony has put pressure on Nintendo. The Wii's substantial lead may drop rapidly in the coming months, and a price cut would potentially negate this by stimulating more sales.
Naturally, Nintendo is refusing to comment on rumors. It is highly unlikely they will be surpassed in sales anytime soon, so they can still enjoy their lead -- but for how long?