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see here is the thing....

Both Sony and microsoft came in with a price they thought would hit mass market appeal for their systems--but (pay attention here) nintendo came in with a vastly lower price and got the average joe (our mass market) consumer wondering why would i pay400-600- dollars for a game machine when chris down the street says this one is a blast and is only 250

that is how they set the mass market price--sure you and i the more informed consumer can see the value/price point for the other two should be higher but joe smoe dose not

and this is why nintendo right now is controling the price--what they say is being taken as gold and teh other two are havng to play catch up to get more people to buy the systems