Greed or sense?

[luinil]

Why isn't the "if demand falls, price will fall" argument completely valid in this case? A product has more than one "price." It has the perceived value, the retail price, and the worth. If the perceived value is still as high as the retail price (due to demand) why should they lower the price. The worth is something that could be considered re-sale value. Both the perceived value and the worth of a Wii is simply as high or in some cases higher than the $250. Thusly unless the demand can eventually be out supplied, the price will never be dropped. It would create an even greater demand on the Wii and supply will never reach demand.