Nintendo did it again. Or did they?  It looks like Sony's ps3 strategy is finally starting to pay off. 

Here are the Japan numbers for 5 weeks ending March 29:

Sony ps3 = 146,948 units sold

Nintendo Wii = 99,335 Wii units sold

According to the Financial Times, the cost of Wii is now 45% less to produce than it was in November 2006.  The article is referring to Japan (Koya Tabata, analyst at Credit Suisse, makes the claim), but production costs in other markets have probably decreased at a similar rate (currency values also play a part in this).

With the ps3 and Blu-Ray gaining steam, Nintendo could drop the price down to $200 and still be making a nice profit.  In the current economic situation this may not be a bad idea.