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as a child a 400$ console was just a dream, neo-geo and jaguar were just far too expensive to even think about.
150$ was pretty much the maximum i was allowed to ask for, for a console. My parents would always say "wouldn't you rather have more games?"
price really matters, I don't know why everyone thinks it is about the library, or the console.
Success of the wii had certainly a LOT to do with price. Price must come down, or more games must be given along with the system. 400$ system with 2 games, plus Home, and maybe a free 20$ online credit, and a Bluray (not spiderman 3) would be pretty good deal.