Why the Wii needs a price cut right now

With both Sony and Microsoft dropping the price of the PS3 and the Xbox 360 Elite, the Wii is beginning to look like an overpriced console. There a few reasons why Nintendo needs to drop at least $50 off the company's best-selling home console and fast.

The shortage is over
Anyone who wants a Wii has one by now. Consumers in the market for a console will no longer look to the Wii for its affordability over the competition. In fact, an Xbox 360 Arcade can be had for less than the price of a Wii already.

The competition
Now that the Xbox 360 and PS3 battlefield has been leveled, the Wii stands alone with arguably less value. If the Wii remains at $250, it will be only $50 cheaper than two gaming consoles that offer high-end HD graphics, huge internal storage, and video marketplaces. Even the soon-to-be released PSP Go--while considered expensive--matches the Wii's $250 price tag.

The incentive
Consumers are concerned with value more than ever. At $250, the Wii does not offer enough of an added incentive packed into the box. Don't forget that this is also the console with the most accessories for sale. At least include MotionPlus, Wii Sports, and Wii Sports Resort in the box to sweeten the deal.

Maybe Nintendo is satisfied with the Wii's performance and will keep the console's price where it stands now. It's by far the best-selling console of this generation, so maybe there's nothing left to prove. That said, we can't imagine that console sales will continue to remain consistent when there's two consoles that offer so much more for only an additional $50.

If there was ever a time for a Wii price drop, it's now. If anything it will put Nintendo back in the news after what seems like months of nothing but Sony and Microsoft rumors, announcements, and SKU changes.

What do you think? Should Nintendo drop the Wii by at least $50?