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Kyros said:
They certainly could have charged $400 until they exhausted that demand, then cut the prices to $300 and exhausted that demand, and they always would have been able to supply them."


That is simply stupid. A 400$ Wii wouldn't have sold. There are two things to pricing supply and demand which would clearly have supported 400$ prices and the perception of fairness by customers. And this would have been too much.
If you add a couple of wiimotes and nunjucks for the main attraction of the wii (playing with friends) you are at 400 anyway.

Besides a 400$ price tag could have killed the Wii before the hype train got going and raising the price after the success was evident would have been catastrophic for image.

No they should simply have upped the supply faster. The Wii is not exactly fusion power technology. Man this Pachter guy doesn't know what hes talking about.

 

 Funny how in Australia the Wii is $400 and is still selling out and completly blowing away the competition. Then again the PS3 still costs $699 and that is outpacing the 360 on a weekly basis now and is on target to easily outsell the 360 down here this generation. I guess we Aussies are just used to being ripped off.