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The Gamecube was cheaper at launch than the Wii though, atleast it was where I live
http://news.bbc.co.uk/1/hi/entertainment/new_media/1943247.stm

At the end of the day if consumers dont like the product they wont buy it at any price. If the PS3 was as popular as the PS2, im sure it woulda sold even at its crazy launch price. Price isnt *that* big a deal.

Having a console that cheap can just give it a bad imagine ("whys it so cheap compared to the ps2? must be crap"), which is something im sure the Gamecube went through. Although this is just from my own experience...