I don't get why we can't just co-exist peacefully!?

[MTZehvor]

ps4tw said:

Figgycal said:

ps4tw said:

dahuman said:
Innovation doesn't exist without competition.

Thats crap as what actually drives innovation is the customer

Because the consumer has a choice - hence competition.

lol why you acting as if though you need to buy a console. If they dont like it they wont buy it so the customer drives innovation with their wallet. 

Most of the consumers in this market do want to buy a gaming console, however. Without competition, a company can merely re-release the same product with little to no innovation without fear of another company coming in and stealing their sales. Some customers will likely choose to buy no console over an overpriced, non-innovative one, but the big thing that drives economic innovation in any field, not just video games, is competition.

There's an interesting slideshow about the amount of deadweight loss created by monopolistic firms (or really any imperfect competition). The sole firm selling these consoles will be an almost complete price setter. The firms in the market now are certainly not perfect examples of price takers, but they're much more constrained by how much they can charge and how much they have to innovate as opposed to how they would be without competition.