According to a leak picked up by the Engadget crew, Nintedo will indeed announce a Wii price cut.

The new $199 price should be announced on Friday, September 25th, and shops will start offering the console at the new price on Sunday, September 27th. Speculation about a possible Wii price cut has been rampant in recent weeks, months even, and now we're just days away.

So how will the $50 price cut affect Wii sales? Well, we doubt it will go a long way towards rekindling interest, as Sony and Microsoft have slashed their console prices on a number of occasions over the past year and a half.

At launch, Nintedo's Wii was the cheapest console around, but Microsoft's Xbox 360 Arcade is now quite a bit cheaper, while Sony's Playstation 3 is no longer an overpriced lump of hardware, as the new Sllim model sells for $299 which sounds quite reasonable.

In Euroland, the PS3 Slim sells for €249, followed by the Wii at €229 and Xbox 360 Arcade at €169. So, even after the price cut, the Wii will end up slightly pricier than the 360.

More here.