The console most in need of a cut, according to CNBC's interview with DeMatteo? The PlayStation 3. "That price point is clearly an issue in this economy," DeMatteo said of the $399 PS3 price. And DeMatteo would prefer a $100 cut over a $50 cut when it does happen (which CNBC thinks will obviously be this E3). "I don't know that $50 gets you that much," DeMatteo said.
The executive also sees the possibility for a Wii price drop as soon as demand drops. "I think [demand for] the Wii could slow down to the extent that Nintendo may want to cut the price," he says. "Nintendo has it within its arsenal to do that. The component costs have come down considerably. They used to break even on the Wii, but now they're making a considerable margin."
If DeMatteo's prediction of a "key" Nintendo game out this year is true (and if it turns out to be a Wii game), the demand may stay steady. The CEO told CNBC, "They haven't given us any insight, but they have told us to reserve [shelf] space." Both CNBC and IGN speculate that it could be a new Wii Zelda. What about the Zelda game that we already know is coming out? Nintendo already told us about one. And it's coming out on a console with better sales than the Wii. Doesn't that count?