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My example with the iPod was in Israel, where the market is so small and hard to access, it's usually *internal* pressure that brings the high-quality products here. Apple doesn't distribute themselves here, they work with a middle-man who, frankly, isn't all that good.  Prices for most high-end electronics are very rarely standardized here.  I saw two DSs in one store that were the equivalent of $50 different.  "One must have been a DS Lite" you say.  No, no.  They were both phat.  The more expensive one... it was blue.  That's the whole $50 difference. 

The other things you said are descriptions of the current status quo. I'm asking, specifically for consoles, why do you have to keep this status quo?

You're working with what the market *is.*  I'm trying to see what the market *could be.*