$500 is fine for me as a investment from buying the xbox near launch and the 360 one month after launch. But for $500 it has to be backwards and offer some really good must have features, otherwise $400 is the price point for me as well as many others, though they might prefer $300 or $350.

Speaking of which, I bought my 3DS at $130, and honestly anything above $200 is WAY too much for a portable system.

If those cars, laptops, smartphones, etc had their prices inflated by things I don't need, then yes. I didn't pay $599 for a PS3 because I didn't want or need Blu Ray, so I didn't want to pay for it.

I have financial responsibilities that extend beyond gaming.

I don't see any reason for a console to be more than $400. That's enough for it to be sufficiently featured and still turn a profit.

what i was trying to say is simple... most hobbies cost money to do/enjoy.

gaming is not different and expecting console manufactures to take loss or sell @ manufacture cost is not reasonable but it is what is asked here all the time. Mass market price is smaller than the $500 here is discution, but people that can wait for that price to come aren't into this hobby as others, it depends on how deep you are into the hobby... my thing with gamers is, i see them here asking for console with lots of features, fast menus, good looking graphics, in sumary they want it all but the don't want to pay for it.

If $500+ was too much in 2006 it is too much currently.

ok, now you are putting your reasons in a way i do understand... you didn't do that before. yet need is subjective.
not that sony need defense, because they did nothing wrong, but BR players did cost more than that back in 2006. but you as a gamer, have the right to not want it. OK fair enough.

now... in regards of Xbox 720 and PS4, you still come up front saying that $400 is max, when all the features are unveil and all of the features that make the console price go over your $400 are "games" related and you for some reason can't see you live without them for the next generation, will you pay more?

i just find odd people talking about price of things they don't know how worth they are...

@bold - same here...

To support the current model that the videogame industry has, which is to end up selling millions of copies of games, a $500 price point is not viable.  It can come out at that, but not stay there.  Sure, you can do what the 3D0 and Neo-Geo did, or heck even the PS3 ($599), but you don't move enough consoles to justify the production  costs of over $50 million to get a game done (including all costs).  It just is not sustainable.

A think about people is they want a LOT of things.  That doesn't mean they will open up the wallet and pay for it.  This is PARTICULARLY true in this era of sluggish economic growth and most people looking at wages not keeping up with inflation.

That's way too much for me. I live in a country where the average wage is much lower than in US or western Europe, so 500 Euro is a lot of money for me, that's 2/3 of the average monthly wage. This purchase hits my budget as much as a 2000 Euro purchase would hit your budget and I bet you don't think that a PS4 is worth 2k :P That's why it's not worth 500 for me. It's too much for me, I'm willing to pay no more than 200-250 Euro for a console. That's why I bought the Wii early in the gen, already own a Vita, but waited with the PS3 until a price cut and will wait for a PS4 redesign and a price cut. The only thing I'm not sure about is which console to buy first, Wii U or PS4.

You're right, but I would say consoles have a longer life. 360 has been around for 8 years, and ps4 for 7.  

And while there may be more use from tablets outside of the living room, that doesn't change the fact that people buy the most overpriced tablet when a MUCH cheaper and equally capable alternative is available. 

There is debate over whether or not tablets have been consuming PC sales.  Indications is they are.  So, people are feeling driven to get a device that is more portable for them at this point, in the form of tablets.  And with this, they then add games secondarily.  It is the gaming gets caught up into the mix of PCs now, and thus people feel less inclined to get a game console.  Another debate is whether gaming is moving out of the living room, and there is also indication of that to.  Remember, a key part of sales is the more casual side, and they are less inclined to get a dedicated device for just gaming at this point.  This day and age, the biggest gaming IP is Angry Birds.  That tells you where things have headed.

I built my PC last year for $2000, I can fork up $500 for a new console, although if rumors hold up it won't be for a xbox.