Dunban67 said:
sc94597 said:
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.
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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
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Their values didn't drop. Their prices dropped to match the values of enough consumers so that the platforms increase their sales. You can only form the conclusion that their values dropped if the consoles are selling at the same rate that they were when their prices were higher or the quantity demand decreased over time with the same market price. The XBO's demand increased with the price drop, and the Wii U's demand is increasing despite not having as sizable of a price drop. Again values =/= prices.
