AkimboCurly said:
How to solve?
1. Manufacturers could price their consoles higher to begin with, so people who value them most buy them, and drop the prices after launch period constraints are over.
2. Secondly, retailers should be allowed to price consoles. We reach ridiculous "scalper" prices of $700+ because 90-95% of the market (the retailers) is artificially forced to move at $500. The scalpers are the only ones, which I'm just assuming are 5% of the supply, allowed to adjust prices, and so are able to fairly neatly price discriminate on all the people willing to pay very high prices. If retailers were allowed to compete on price, 100% of the market would be sensitive to demand.
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Wait... can't retailers charge the price they want ?
First option falls into a PR problem I guess. Microsoft and Sony both tried in the past and the outcome was disastrous
