It is funny how so many people do not understand the basic business model.
Prices go up when raw material or labour costs increase.
Example: oil costs more so airline tickets go up.
Prices go down when you are loosing market share.
Example: GM, FORD and CHRYSLER give "employee pricing" and rebates to everyone.
Prices stay the same if your market share is growing, or you have a monopoly.
Examples: Nintendo Wii, MS Windows.
This is the basic business model. The markets (supply and demand) dictate the cost. If Nintendo was like the oil companies, they would have raised the price when they realized people would pay more just to get one because of the short supply. The fact that they did not take advantage of the situation, like so many other industries would, shows integrity.
In the absence of evidence to the contrary, always assume you have the upper hand.
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