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VGKing said:
"If consumers think that the Xbox 360 offers a better value, then the $50 PS3 price cut could bring the PS3's average price below that of the Xbox 360 without actually driving PS3 sales higher than Xbox 360 sales.”

No that's not the case. Its all brand awareness and "my friend has an Xbox so I want one too".

 Part of the reasons consumers think the xbox 360 offers a better value is for EXACTLY what you said, unless you put no value to the fact that you can play games with your friends. If a system is selling better for a higher price it means consumers thinks its a better value. Simple as that.

 

psrock said:
I still don't understand the issue, I can buy a $199 360, I can't yet for the PS3.

The issue is that after the pricedrop, a lot of sony fans still thought the ps3 was the most expencive console, when this actually proves that at least in America, the 360 turns out to be the most expensive console. The average 360 console sells for more than the average ps3 console, thus it is more expencive. Minimum and maximum prices have nothing to do with it.