Is releasing a $400 plus console a bad Idea?

[Jaywood2010]

osed125 said:

JayWood2010 said:
I dont think $400 dollars is a bad idea because your early adopters will be the hardcore gamers anyways and it allows them to make a more powerful machine that way. Over time the price will go down but id prefer a $400+ machine because if it was 2-300 id be kind of let down because i know it wouldnt have a lot of power.

That's a double edge sword. How long can the hardcore fans satisfy your sales? Not all fans are going to spend $400+ at the beginning. And it usually takes 1 year (sometimes more) to make a price cut without taking big losses (or sometimes more losses that you're already taking). 

I personally think $400 is the maximum for the next gen consoles. MS or Sony could release a second SKU that cost $450, but more than that will be very risky for short term success imo.

Yeah that is true but I do think it is better for the long run to have a semi powerful console. I think $500 should be the absolute max but the sweet spot is $400.  Just my opinion though