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Smashchu2 said:
He summed up what I though. One thing I didn't think was that people will now expect price drops. Expecting future price cuts will make buyers demand less (Econ 101)

Why shouldn't consumers expect a price cut? Unlike portables, these hardware companies make a fortune off controllers/accessories/etc. off the console side to boot. Don't tell me Nintendo is donating all that money from $20 nunchakus (that probably cost $2 to make) and $20 Wii Motion Plus' to charity.

There has never been and never will be a console that never drops in price. 

Even the NES which had like 95% market share still had price drops.