Looking back at the history of Nintendo, you can see that every video game console which they released was priced at $199. Even when the PlayStation, PS2 and XBOX came out at $299, Nintendo kept their launch price at $199.
It is probably safe to assume that Nintendo will keep the same price strategy for Nintendo Wii, and analysts seem to agree. Nintendo has lost a great deal of market share over the past few years, especially with the GameCube. However, with the release of Nintendo Wii, they have a chance to win back some of this market share, and the pricing of the console is probably going to be on of their biggest strategies. With the lower end XBOX 360 and PS3 systems starting at $299 and $499 respectively, a price of $199 will drive a lot of sales for Nintendo.