DMlCK90 on 01 December 2012
The original PS3 was I believe 800 dollars to make, so they were already heavily subsidized. Sony got arrogant and thought that the PS3 would be a runaway success like the PS2 and their plans backfired. That's why they thought they could price it as high as they pleased. If you look at history, 200-300 dollars is the sweetspot in console pricing for most people. Anything higher is most likely to fail. If the PS3 had launched cheaper they definitely would have built a bigger install base than 360 more quickly and most likely have won this gen.
