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Bandorr said:
https://www.ign.com/wikis/e3/E3_1996

"Humiliated by Sony's cataclysmic announcement of the year before, the hardware manufacturers had supposedly all agreed not to make similar announcements in 1996."
Which is the PS1 coming out and destroying the Sega Saturn and the Nintendo Virtual Boy. The PS1 was announced for $300, a $100 less than the Sega Saturn.

"Despite the big announcement from Sony, SEGA and Nintendo tried to stay the course with their pricing. It didn't work. By the end of day one, Nintendo announced plans to match price with Nintendo 64. By day 2, SEGA did the same.

And apparently that all came round the same rumors of Microsoft doing price cuts.

The Sega Saturn launched at $400 in 1995. Dropped to $200 in 1996. That is a beating.

My goodness. A $200 drop in one year is insane. Biggest ever? I wonder how much they were losing on each one sold?