It’s official, Nintendo is not slashing Wii prices. According to multiple sources, Nintendo President Satoru Iwata went on record at a news conference to say, “A price cut in a difficult economy cannot really excite the market and drive up sales. As of now, I really don't think that a price cut is a good option for us."

The rumored price cut was fueled by speculation that Nintendo had managed to drop Wii production costs 45% since launch, as first reported in the Financial Times.

Nintendo still feels they are a market leader and have no need to engage in a price war. As detailed on I4U.com, the Wii sold 753,000 units in the US in February, up 74% from the year before. However, Wii sales are starting to dip in Japan, with the PS3 outselling the Wii in March for the first time in over a year.

"The Wii is in the most unhealthy condition since it hit the Japanese market," Iwata claimed. "The current condition in the Japanese market is not the one we want."

Nintendo may be banking on new software to save the day for the Wii. The much anticipated Wii Sports Resort featuring the new Wii MotionPlus control is slated for release this summer.