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Chrkeller said:

Price matters.

If that was the case, Series S should have been outselling PS5 when in fact its sales started decreasing as soon as Sony managed to put hardware in store 

You don't need to buy 3 copies for 400 USD day one anyways

The most price sensitive customers only buy console later on the console cicle of life. The ones who buy early are willing to pay more.

Maybe if the console is more expensive you will be less tempted to buy multiple copies, but keep in mind most households don't own multiple consoles and this is a niche that can be mitigated by temporary discounts, bundles and less expensive revisions during the generation. You can easily get the 450 USD for yourself day one and buy 350 versions to your kids in some Christmas bundles along with some Mario or Pokemon on the third, forth or fifth year of the console's life