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Make and sell 20million consoles at $250 cost price $140
Make and sell 20million consoles at $200 cost price $140

Profit at $250 = 2.2billion
Profit at $200 = 1.2billion

Therefore the price stays up.

In strict economic terms the price of the Wii should go up because demand outstrips supply. We have seen on places like ebay Wiis selling for $500 or more.



Tease.