Realistically speaking, I think we need to include a game and taxes (and possibly an accessory) into the pricing and that makes the PS3 cost (roughly) $500 initially. Now for "Core" gamers who are also big Sony fans this is not that big of a deal this isn't that big of a deal because they're going to get a lot of use out of it, and it makes up a very small portion of their yearly gaming budget.
When you move into more "Typical" gamers you'd find that the average one anticipates spending $500 to $750 per year on gaming; they may be willing to spend a little more in the year when they buy a console but a $300 and $400 console really eats away most of their budget on gaming in a given year.
As yoj move into the "Casual" gamer range you will find that the XBox 360 and PS3 (and probably the Wii) all cost more than they are typically willing to spend on gaming in a given year; these are the type of people who bought a Gamecube or PS2 at $150 and buy 1 to 2 new games in a year (probably a couple of value or used games as well). You may discount the importance of the more casual gamer market but it (potentially) represents up to 66% of the hardware sold.
