I think the real question about selling at a loss is what your doing because of it. In the PS3s case (uniquely), it's to try to save off the fact that without the loss, no one would buy a $800 PS3. No one. For Microsoft's case, it was a much lower loss, and was recouped VERY quickly (about 1 year to break even as far as I can tell). What's key about last-gen's price losses was the fact that it allowed rather good consoles in the PS2 and Xbox to maintain a very strong mainstream price vs. the GC. I think that's MS and Sony's huge error: they've put out systems with bells and whistles that are just too much for gamers. I love the 360, and I waited in line for it @ launch day, but I did it because I ended up selling an extra 360, so I wouldn't pay the astronomical price. IMO, if Sony, or MS would of launched their systems @ $300, we wouldn't be discussing the Wii's dominance. Period. The Wii would be doing very good, but I don't know if it'd do quite what it's doing in the US and Europe.
Back from the dead, I'm afraid.
