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theprof00 said:
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.

 

Although I agree with you that price is an important issue, there is a drastic difference to a consumer between a system that launches at a price and a system that hits that same price 3 to 4 years down the road. The early-adopter mindset ("I want to own something before anyone else does") really helps to push a lot of people to buy something at a higher price, and will push someone to buy a system for $300 when they would only buy it for $200 if it wasn't new.

Beyond that, people are generally (far) more likely to buy something that their friend (or friends) has than a product where they don't know anyone who owns it. If the PS3 was more popular and it dropped in price people would be far more likely to buy it as it becomes affordable to them ... In other words the higher price initially makes the system less desireable, and since the system is less desireable it sees lower sales at any price.