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ramberk said:
Price matters CrazyMan. Your not thinking like an average consumer. The console wars are not determined by the hard core gamer, but by the average consumer. The average consumer looks at: cost of console, cost of games, variety and amount of games, fun games. The hardcore gamer looks at: technology of console, extra features (Live/Home/VC), exclusive games/franchises. What the average consumer and average gamer look at is totally different.

I think that the avg consumers should not be lumped into a particular game category. I think that the avg consumer only looks at this: "I want this game, how much do I put down before I can play it?"

The avg consumer doesn't start with 5-10 games, they start with one. They evaluate the total cost before playing vs the desire for the game. So, effectively the games don't cost $50-$60. For this gen, they cost from $250 for the Wii w/ Wiisports to $460 for the 360 to $660 for the PS3. I just don't think that there is any single game that justifies the cost of $660. Especially $250 gets you the "cool" game that everyone is raving about.

For sony to compete for 2nd place in this gen, they'll have to drop at least $150 by October. $200 to put xbox in 3rd place. $300 for a chance against the Wii. Any less than $130 drop by end of this year guarantees a 3rd place finish for this gen. If they drop < $130 by end of this year, PS3 will be at 360's mercy of how far they want to be ahead of the PS3 in this gen.

Of course, this doesn't take into account whether or not share holders will allow them to drop the prices at a further loss.  Like the OP said, rock and hard place