With Sony and Microsoft both delivering significant price cuts in recent days, it would seem the ball has been put squarely in Nintendo’s court. With the Toyko Game Show happening at the end of September, will we see the Wii drop to a much more gift-friendly $199 price point?

It seems unfathomable that Nintendo won’t drop the price in time for the Christmas buying season. Sure, the Wii’s $270 price tag was a great deal a when it launched, and a PS3 cost twice as much and an XBox 360 wasn’t a whole lot cheaper. That was then, this is now.

You can pick up an underwhelming XBox Arcade model (here’s a free tip: don’t) for $200 or the real version for $300. The PS3 Slim comes in at $300. That’s only a few dollars more than the Wii. And that’s not good news for Nintendo. Because at the same price point, the Wii’s shortcomings become a lot more apparent. Frankly, it’s incredible they’ve been this successful this long, without cutting the price earlier, but when you look at the number of AAA titles on each system, the hardware capabilities, the on-line services, not to mention the upcoming motion controls for the PS3 and the 360, Nintendo’s gimmicks may have run their course. It’s still easily the best system for retro title emulation, but in terms of being in the present, it’s falling behind.

With Nintendo on it’s home turf in Tokyo, and perhaps with only Super Mario Bros Wii as a must have title for Christmas, it seems the time is ripe for a price cut. But don’t worry, it will still print money.