Several "experts" interpreted the April NPD results and the failure of GTA IV to significant boost sales as indicating that the PS3 and Xbox 360 had saturated their potential market, at least at the current prices. If the boost also fails to show up in May, it will be hard to find any other interpretation. Obviously having a saturated market at current levels is unacceptable, and quite possibly unsustainable.
There are only two solutions in that case. You can cut prices, which both Sony and MS are loath to do because it would mean bleeding red ink. Competing with each other is pointless since there may not be much there in the way of a market to fight over. Or you can increase the market. Looking around the best and perhaps only large untapped market would be the gamers that Nintendo is so successfully attracting, so the only logical tactic is to compete with Nintendo for a portion of that market.
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