I meant to put this in the OP but another point of reference is apple products.
People have a perception that Apple products are better and the higher price point reinforces that in people's minds. Why should I get the XB1 when for just 50 bucks more I can get the superior PS4. People are will to pay over 100 dollars to get the 32.gb I pad over the 16 gb even though the capabilities are identical and the cost of the increased store is marginal to Apple.
End of 2009 Predictions (Set, January 1st 2009)
Wii- 72 million 3rd Year Peak, better slate of releases
360- 37 million Should trend down slightly after 3rd year peak
PS3- 29 million Sales should pick up next year, 3rd year peak and price cut







