Wii $199, PS3 $299/$399, 360 $249,$299,$399 Who gains the most?

[jalsonmi]

I feel like the issue is more complicated than you propose.

If we're talking about it based on IF the consoles dropped to these prices, yes the PS3 would gain the most simply because the Wii isn't having any problems at the price it currently is at. There is the thought, though, that with a lower priced PS3 the Wii will stop selling as well, than a drop to $199 would do it quite well--it's the aforementioned magic number for later adopters and would be enough, I believe, to keep Wii at the head of the pack, on top of the obvious many other ways and reasons Wii is winning the generation. 360 will continue to drop under this model, with it's various problems still intact.

Another matter entirely is whethor or not this will actually happen. Considering the extreme expense PS3 consoles continue to be for Sony, I seriously doubt we'll be a $100 cut in 2008. Maybe at some point in 2009, but I think the most you can hope for is $349/$449 in the near term (Conair's suggestion of $249/$349 is out of question, especially with BC. The way they were able to cut it to $399/$499 was by pretty much axing BC). In this model they gain a little, but Wii would probably be able to stay well ahead of them even by staying at $249. It's just too big a difference in price for most people, especially with the $10 difference in game prices, which does add up.