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MattAAron said:
I think it comes down to this...

You don't see Ferrari & Lamborghini changing their cars/business plan because VW sold more Beetles then the Murciélago and Enzo.

The Wii is in a completly different class, a different market. The Wii is cheap and its market is larger. I don't think it will effect Sony/Microsoft's strategy with their next console.

"You don't see Ferrari & Lamborghini changing their cars/business plan because VW sold more Beetles then the Murciélago and Enzo."

True.  But it would seem like the end of the world to them, if only expensive cars had been always sold, and now a company was selling cars, not just to the rich man, but to the people (Volkswagon =  The People's Car)

 

@RolStoppable

"If you want to use the car analogy, this means that Sony and MS, in order to sell a powerful system with many features similar to what the PS3 and 360 were when launched, will have to price their next systems in the $700-1000 range to run a profitable business model."

With technology prices coming down, Sony and MS could get away with the same initial prices as their current gen. launches were, that is $400-600.  Just that the technology jump would not be as noticable.  (Two PS3s wrapped up in HD tape.  HD being fancier than plain old HP tape) 



Torturing the numbers.  Hear them scream.