Exactly, that's why DreamCast and GameCube won last gen....oh wait.

DC was undermined first by Sega's own prior incompetence, and upon release by a still healthy PS1 market, and the killing blow delivered by Sony promising the PS2 would heal the sick and walk on water. It never had a real chance to bite into the market.

GCN also suffered for PR reasons. The low price oddly worked against it, as years of Sony PR convinced gamers Nintendo was a kiddie company. Nintenod played into that with the GCN's design and price,and their unwillingness to inflate the 'Cubes specs, making it appear at a glance that the system was far underpowered next to the PS2 and XB (which we know is untrue). Moreover, the cost difference was negated by the inclusion of DVD playback on the PS2 and XB just as that market exploded, becoming the fastest selling new medium in history (unlike BR and HDDVD, which consumers still have not demonstrated a strong interest in). And remember that the PS2 cut it's price to $200 just after the GCN launched, and after responding NIntendo's console went from being 67% of the price of a PS2 to 75%. With the Wii, until recently it was 63% of a 360s price and less than 50% the price of a PS3 - plus it has the added value of the game. Of course I don't think that anyone would be buying the thing if it didn't also have the innovative controller, so the price alone can't be held responsible, but I'm also convinced that a $400-500 "next gen" Wii wouldn't be doing this well either.

Short answer: You can't analyze fun.

Misterd, the 'oh wait' at the end is intended sarcasm but you are correct that the price differential is greater this time.

 Wholeheartedly agreed ...

bingo was his nameo

As insulting and poorly phrased as it is there is some truth to what Hus said though ...

In a lot of cases industry analysts are very well paid and can have a very poor understanding of how expensive something really is to a typical person. Last time I saw the statistic, the median household income in the US was $50,000 per year which means that 50% of households make less than $50,000 per year. An industry analyst who is making $100,000 to $250,000 per year (potentially living in a household that has a yearly income of $150,000 to $500,000) has difficulty understanding how much money $600 is to a household where their total income is less than $75,000 per year; in particular how much money it is to a household where the income-earners are not hardcore gamers.

Essentially, analysts may not have realized that the PS3 was priced at a point where the majority of households would not consider it as an option. 

No reason to be sorry.  We're all welcome to our own opinions. 

I agree that 1M a month is a great number of systems to make.  But Nintendo makes over 2M DSes a month.  As a corporation, they should be held accountable by their shareholders for not maximizing their profits and making enough systems to meet demand.  Due to Nintendo not expecting to sell as many Wiis as they have to date, they are now facing limitations on components from their suppliers and cannot make any additional units.  If this continues, people may eventually give up on buying the system and either get one from one of their competitors or turn to some other form of entertainment.

if nin knew what was comming there wouldnt have been a supply strain like thee has been--i think they kne it would be big ...but not this bg