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JaggedSac said:

In 10 years(as far back as this article goes) there hasn't been as huge a jump in video game revenue as between 2006-2007 and you are going to attribute that to a slight increase in hardware costs and software costs(which are not really that much more from previous generations when you consider inflation). And as always newer consoles are more expensive than the older ones and still there hasn't been a jump this big. It is expected to be even bigger this year even with console price reductions.

 

You cannot include inflation... the graph doesn't not take it into account either.

The hardware increase in general is much larger than before.

generation 5th 6th 7th
Nintendo $199 $199 $249
Sony $299 $299 $499/599 ($399)
Microsoft - $299 $299/399/479
Sega (not
really relevant)
$399 $199 -
other consoles sold too
little to
count at all.

I don't see how you can't see the huge increase there.

If I were to make a guesstimate of average console price (based on how huger the sales were versus price) the 5th gen would be about $270-280
6th gen a little higher, about $280-290
7th gen must be at least $330-340

And despite that there is the point about it being the start of the generation, which is when there is a boost in revenue anyway (see 2000 - 2001 increase from $6.6bln to $9.4bln which is a percentage increas of about the same as it says in the article)