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It is clearly evident now that pricing has very little to do demand. In fact more sales can happen even at inflated  prices if the demand is there. Seeing how the Wii and 360 are priced much above its predecessors and even have better sales than their predecessors we may be seeing a generation that refuses to have price cuts. Instead they may resort to the ipod model of just improving the older ones (Xbox elite) or have budget priced one (arcade).