Sales would be the same more-or-less. MS. & Ninti would likely drop the prices of their consoles in a few months if they launched at that prices. The PS3 would stay $599 while both the 360/Wii dropped to their actual prices. History would likely repeat itself.

Depends on how the theoretical goes. If they were forced to have price cuts matching the PS3 along its entire history, then I doubt either would have sold as well as the PS3. The PS3 only survived the first 2 years because of the consumer/developer/retailer goodwill that the PS2 had earned for Sony. If the companies were free to price cut when they wanted, then both companies would have done so on day 2, and sales would be identical to how they are today.

Obviously if you clone Sony's situation the next console should mirror Sony's.  The point was to go by reality.  And the reality is the 360 would have been much lower than PS3, even Seece admitted this on the first page.  I'm pretty sure this isn't even debatable.  The Wii would be in first.  The lead wouldn't be as big, but it would still have won.

Interesting question to ponder. You have to ask yourself essentially, would the soccer moms and other people of the expanded audience have bought a Wii for games like Wii Sports/Wii fit/ Wii Play/ NSMB/ Mario Kart Wii at $599? Some bought the Wii at $250 just to buy Wii Fit, which costed another $100. Some bought a Wii on ebay for over the market value just to get one at or near launch. I sold an extra Wii I bought to a mother at $350, who told me how grateful she was to get one for her son for christmas.

The games will always be the main selling point of a console, while price is secondary. If a console has good enough games that people want badly enough, then price won't be much of a factor for people. So the answer is yes, I think a good part of the Wii audience would still have bought the console, because it still has the same compelling games that these people would have wanted just as much. Would it have sold less? Probably, but probably not as much as some people think.

Same deal with the Xbox 360, although I think the value ofthat console is tied more to the price, because it is very similar to the PS3 and competing directly against it. I know I decided on 360 over the PS3 because it launched $200 cheaper than it, and I haven't looked back since. So the 360 sales probably would have suffered more. But basically, I think the sales would be more equal than they exist now, but the standings would still be the same: Wii>>>>>360>PS3

In its first few months that's how much a Wii did cost (second hand, anyway).