Why are so many people requesting console price cuts?

[NJ5]

Bodhesatva said:

Right, that's what needs to be made clear. Since the recession in the US started, the 500$ PS3 has:

1) Not become cheaper for US Citizens.
2) Become less profitable for foreign manufacturers to sell.

So there's two halves of the equation, and only the latter half has been affected. And I agree, profitability > install base.

You're assuming Sony pays foreign manufacturers in dollars, which might not be the case. Nintendo specifically said they lost a large amount of money (equivalent to $800 million if I remember correctly) due to the recent currency fluctuations.