Nintendo's latest home console has raised the bar and paced itself to be one of the best selling gaming machines of all time. The Wii's launch and subsequent years of utter sales chart dominance have coupled to make it an absolute titan in the gaming arena. Recently, however, the machine is being outsold by competitors. Profits have dipped by nearly half and the motion-controlled wonder has lost some of its sheen.

It's those factors that lend legitimacy to price cut rumors that crop up from around the net. Engadget has a "trusted source" that's come to them with news of a price drop. The Nintendo Wii currently sits at $200 for retail; Engadget's source indicates that the system will be reduced to $150 on May 15th of this year.

The dip in sales and profits, at a certain point, is entirely justifiable. By now, one has to assume that any consumer that honestly wanted a Wii likely has one. The system has been selling like gangbusters for years on end, so either the same people keep buying up hardware or the Wii has experienced excellent market penetration. We're assuming it's the latter. As such, Nintendo's likely running out of customers. A price drop, at this stage in the game, may encourage the remaining dozen or so to get to the store and pick up a console.

The only snag in this rumor, as far as we're concerned, is the timing. While it's not impossible for Nintendo to post a price drop for May 15th, we'd like to think that the initiative would work against the company. E3, the gaming world's largest annual convention, takes place during the onset of June. The Nokia Theater, consistent home to Nintendo's press conference during the show, would be the perfect place to announce a price cut and bundle for the Nintendo Wii.

What do you think?  Is Nintendo finally going to drop the price on the Wii?

[via Engadget]