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Wii price drop confirmed by Nintendo. Is it too late?

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Earlier this week, we reported on rumors that Nintendo would slash the price of its best-selling Wii console by $50, bringing the total console price to just under 200 bucks. In a statement released Wednesday afternoon, Nintendo confirmed the drop, and said the new price tag would make the top-selling system "even more appealing."

Although the Wii still regularly bests sales figures from rival Sony and Microsoft consoles, the summer was not kind to Nintendo. According to the tracking firm NPD, Nintendo sold 277,000 Wii units in August – a 39 percent decline over the same time last year. By comparison, Microsoft sold 215,000 Xbox360 consoles in August, which marks a 10 percent increase over the previous year.

Meanwhile, Microsoft and Sony both dropped prices on their flagship consoles, making a mirror move by Nintendo all but inevitable. (The PS3 and the Xbox360 Elite now both cost $299; the regular Xbox comes in at $199.)

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