Really bad predictions for console sales

[Avinash_Tyagi]

haxxiy said:
^ *looking at sig*
...
I see...

 

 My predictions are irrelevant to this issue, its purely from a rational standpoint, first off PS3 and 360 don't effect Wii sales, the reason is pure economics, the market for gaming hardware operates in an Oligopoly/monopolistic competition framework, with few makers, who build similar but different products, the key in such a market is product differentiation, the more different your product is from your competitiors, the more like a monoploist you can act and the less likely price and bundling will affect your sales, because your products will lack substitutability, with the Wii there is strong differentiation, a PS3 or a 360 just won't replace it, but a PS3 and 360 are very close to each other, so price between those two matters, but for a Wii even with the 360 undercutting it, it isn't affected, because it gives an experience that the others cannot replace.

 

No matter the game or the price drop the PS3 won't affect the Wii sales, only the 360 will be affected