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dallas said:
price cuts will increase demand for the short term. I think that if you go back and look up the PS2's sales data, you will find that sales for at least the next couple of months following a price cut, will be higher. Of course, this won't reverse the trend of a peaking, and then declining amount of sales inherent with any gaming console.

The statistics don't support your claim. While a price cut will increase sales for 1 month, it all goes back to normal after that. But the overall number of consoles sold with that price per month does not change, and that is what is important, not the 1 month after a price cut. You could look at the data I have aquired, and calculated. It is much easier to prove with numbers than with how we feel about things.