I don't see either 360 or PS3 catching the wii. But I do see 360's price drop being attractive to PS2 and Wii owners. There are millions of PS2 owners desiring to play GTA4, COD4, Halo3, etc. Most agree that $199 is the magic price for mass adoption.
http://www.gamespot.com/news/6197553...dlines;title;2
It doesn't take a world-class economist to understand that Microsoft's recent price cuts to its full line of Xbox 360 systems would boost sales, but a Bloomberg article has put the size of the spike into perspective. The news outlet is reporting that retailers saw a 100 percent sales surge for the Xbox 360 last weekend across all configurations, with "some models" selling at six times the past weekend's rate.