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The problem with that is how much higher do the prices have to go in order for supply and demand to balance out evenly?

Are we talking just $50-100 bucks? Or something closer to double the original price? Something that would put the launch PS3 to shame?

And with Sony and Microsoft in particular (because Nintendo doesn't give a damn, they just beat to their own drum.) Is that if one company does it, you can bet your ass the other company will stay at their original price because now, they just became the most affordable next gen console on the market and all the casuals and average Joe and Jane gamers are going to flock to them. So it's now a question of do you sacrifice long term market share by pissing off consumers for short term profits by selling the consoles at higher than their original price? Profits that may not last as long as they hope once manufacturing DOES catch up with demand and everyone flocks to the more affordable system while the more expensive one collects dust in store shelves.