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Rafux on 08 November 2012
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Viper1 said:
Player2 said:
Rafux said:
 

"Other games were priced at about $200 (and up). With these "premium" prices, though, most gamers weren't able to afford the system, so the console was only accessible to a niche market."

So you want a niche console to compete againts mass market consoles like SNES and Genesis.

Is price the only reason why a system cannot be a mass market console?

It can be a major factor.   It's not the only factor though.

With regards to the Neo Geo though, it was easily the main factor.  Games at retail in the US were all over $200 each.  Some were $350.  For a single game.    A console priced at $600 is one thing.  At least that's a one time expense.   But to pay ~$300 for each game meant an investment on a scale very few people can afford.  That investment automatically puts it outside the mainstream pricing tiers.   Buy 5 SNES games in one year at $60 and it will cost you $300...the price of 1 Neo Geo game (and they weren't all that great either). 

This. Being a niche means to take a market that haven't been exploited. Neo Geo wanted to take the high end consumer who wants an arcade experience at home.