$299-$399 ps3 price point a crucial factor

[johnlucas]

fabledgamer said:
there is no way the ps3 is going to drop that fast. I mean the whole point is to try to make a profit off the system. Sony won't be making a profit if they keep doing price cuts. But let's say that they do drop the price that much, Microsoft would just drop it even lower since they will probably take a smaller hit for each console sold and they have better software sales for now.

If i was the president of the game division in one of these 3 companies, i would actually rather come in a respectable 3rd place and make a profit than come in 1st and lose money the whole generation.

Hmmm. Sounds familiar.

http://en.wikipedia.org/wiki/Nintendo_GameCube

Also,

Rath said: 

No Leo, price isn't the reason. Perception is.

Wii is perceived as the trendy console, the fun console, the console to get this generation. The PS3 isn't perceived as this.
The reason may originally have been the price of the PS3 being too high but now its image is wrecked by a year and a bit of being in third place. I don't know if it is reparable by any measure.

Another good quote.

Gamecube is also a lesson in this truth. It still is in stock on shelves at $99 U.S. Didn't save it from utter doom in the 6th generation nor is it moving the leftover still on shelves. Luckily it was a profitable despite its weak marketshare. 

John Lucas