Speculation began last week that by May 1, Nintendo would be dropping the price of the Wii gaming system. And this week it appears that the rumors are true.

The original belief was that the price of the system would be slashed to $149.99 by the beginning of the month. Experts argue that the price reduction is a precursor to the release of a second generation Wii console that could be released over the summer.

The price drop this week by major retailers did not go as low as predicted. Gamestop, Best Buy, Toys R Us, Target and even Amazon have all reduced the price of the Wii console this week to $169.99 making it the lowest cost system available to consumers. Some experts are saying that this may be just the beginning, and that the price will continue to decline until it reaches the expected $149.99 by the beginning of May.

Industry speculation is that Nintendo has developed and will release a second generation console that offers more features than the current console in an effort to compete. One such feature experts are looking for in the new release is HD graphics and support. However, Nintendo has made no statement regarding the price drop or any intentions of releasing a new system.