With the Wii still selling like there's no tomorrow, retailers are left with some tough decisions in wake of this announcement from Nintendo.
The obvious answer is for retailers to increase the price of each new console by £20, retaining the already slim profit margin on each console. However, when customers see Wiis on the shelf for £200 standalone they're unlikely to want to purchase, particularly in these heavily-publicised hard financial times.
An alternative answer is for retailers to take the hit but buy fewer consoles, which would decrease their operating revenue but would at least allow them to maintain a reasonably-priced inventory. When you consider how many consoles the likes of HMV, Game and Gamestation buy in the UK each year you're talking about an increase of millions of pounds for Nintendo if retailers continue to buy consoles in the same numbers.
We'll see how this situation develops, but certainly don't be surprised if the next high-street retailer you wander into has the little white wonders starting at £200.