UPDATED:Do you think the Wii U will get a price cut this year?

[Dunban67]

sc94597 said:

Dunban67 said:

Still an "A" for effort- but your aim is getting worse-  You are talking about "inneficient markets"  and the definitions you are using are typically applied to investments like Real Estate, stocks and bonds-  The value of investments rise and fall over time-  The value of a current/recent gen video game console, like virtually all modern technology will always drop over time (unless it becomes some rare colllectable 30 years from now)

Video game consoles (and games) frequently have supply issues. In these instances the value and market price rises. And the video game console market isn't a perfectly competitive or even realistically competitive one either, it is most oftenly characterized as an oligopoly, so it very well may be an inefficient market. Nevertheless, I would say the value of video game consoles increases, peaks, and then decreases with time. More often than not demand increases with time for video-game consoles, until they peak (incline caused by game releases and then a decline by market saturation.) This is true even when the price changes are miniscule, if existent at all. This also shows how demand (proportional to value) and price are asynchronous in the video game console market. The manufacturers, because of thier oligopoly, aren't price-takers (like, say, farming) and are able to manipulate prices more easily. This is why we don't see console prices change very much with changes in demand. Usually if a console price is changed it is because of reduced costs of production and an endeavor to expand consumer-bases. 

video game consoles rarely have supply issues after launch demand is met-  Specifically Neither the Wii U or X box one has hardly had supply issues post launch this generation-  both of their values have dropped since launch via lower prices and more bundling 

 

 you are armed with info but you are not applying it very practically