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Wii prices drop: What's the best way to spend $200 on games?

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wii_lIn recent weeks, both Sony and Microsoft dropped their prices on the PS3 and Xbox 360, respectively, and now Nintendo’s getting in on the price-cutting action by dropping the Wii’s sticker price to $199 from $249. That makes Wii the cheapest — Xbox 360 and PS3 still run $299 — and Nintendo no doubt hopes to revive the console as the it-gift for the holidays this year. (Xbox Arcade is still $199.)

So what is the sweet-spot price for a gaming console? Is the $200 mark it? Can it possibly be, given how successful Wii was at its previous price? Is a Wii better bang for my gaming buck than, say, the $199 8GB iPod touch, or a DSi? Part of me wonders how big a difference that $50 makes over the lifetime of the console, especially if game prices don’t drop, too.

Okay, PopWatchers, given $200 to spend on games, how would you distribute your funds? Buy a Wii? Or a few solid Xbox games? Or dozens and dozens of apps?