| RolStoppable said: Yeah, the PS3 launched at a bargain price when compared to the 3DO. That's how console prices are judged in the real world, because people are carrying an inflation-adjusted chart around. |
You don't need to carry one around to realize the effects of inflation. The risks and costs of spending a certain amount of money are scaled by how expensive everything else is, and what wages you receive. If your wage is $5 /hr then a $200 console is much more risky to purchase than a $200 console when your wage is $10 /hr. Effectively the second console costs less than the first, becaue the currency is worth less. One dollar in 1985 is equivalent to $2.17 today. This is reflected (at varying degrees) in the costs of everything, video-games (and electronics in general) being some of the most inflation-proof products because of their high competition and consistent progress, but even electronics are subjected to economic rules. A dollar in 1985 can buy much more than a dollar in 2013, while the total purchasing power for performing a task remains the same. That is why adjusting for inflation is necessary when discussing costs.
