So what market segments want what in what percentages at what price?

Saying that it doesn't offer anything to consumers means you know what consumers want?

Go on...

Spill the beans.

What do potential game console consumers want?

Edit: Demand is defined as the quantity of a product or service consumers are willing and able to purchase at a particular price.

tl;dr

I don't have to tell anybody what the market wants. The market tells us what it wants and far the past year and a half it's been telling us quite clearly: the Wii. If they didn't want it why would they pay for it? If they didn't want it why would it still be outselling the 360 despite more similar prices in Europe? If they didn't want it why is it always sold out despite not having a single price cut or change in bundling?

Either way, we'll find out the answer soon enough. With the way things are going PS3 may have no choice but to cut prices and hope for the best and then we'll see. I actually expected sales to do better if they have the 80 GB even if it is more expensive as it gives a lot of PS2 owners something that they not only want, but need - backwards compatibility.

I don't think the ps3 is a good example of why price cuts can fail, I think other systems, such as the ngage, nuon or even gamecube offer more insight.
The ps3 may have extra features/services that people don't want to pay for, but it still also plays games, dvds and ps2 games. As there are still a good number of people buying ps2 at $100, it seems if the ps3 was only 100 or 150 more these people would trade up and buy the ps3 outright.
There are many gamers, for whom the pricepoint above $299 is too much. And there are still more gamers for whom $199 is the target price.

I would describe the current console situation as Magnum Classic (360), Magnum White (PS3) and Solero Exotic (Wii). Two chocolat ice creams and one fruit ice cream. So if Magnum White drops it's price, sales of Magnum Classic will decrease and it will have little effect on Solero Exotic. Why? It's simple your looking for motion Gaming or HD gaming.

The title fails and I don't even bother to read long paragraph of something totally ignore the concept of price and demand curve.

 You took an economics course and skipped everything to do with utility?

and you trying to back up a price drop don't increase demand???  stop talking about value or whatever, each price drop along the price and demand graph will reflect to an increase in demand, how hard is it to understand??? 

LoL

"stop talking about value or whatever"

This little quote highlights perfectly your position.

The "or whatever" tells us that you don't understand what was said and so you tack on "or whatever" as a sort of nervous all-inclusive. The "stop talking about value" part is probably best translated as "I don't get it..you're confusing me..please stop!".

A price drop alone is simply not a guaranteed increase in demand, that is a matter of fact not even up for debate. For example, I can sell my dog's crap for $50 on the streets of New York City and obviously sell very little (probably none). But even if I cut my price down to absolutely free I doubt my sales would increase. This is of course because New Yorkers have absolutely no need of dog poo and its values as a fertilizer have no value to them. In fact the only way I would sell some is the sympathy of those walking buy feeling horrible for my plight...but if I were giving it away for free even those people would be less likely to .."purchase" the poo and my sales would probably drop.

Values and their sum representation as a value to a consumer are the key factors in determining how effective a price drop is or is not. Poo is an extreme example of course but values and their value are very important whether you happen to understand them or not.

 how simple you want this be??? demand line is always have negative slope, as price fall quantity demand will increas, the better question of the topic is will a $50 drop be significant enough to increase the quantity demand. yes consumer have a fixed value to everything they are willing to purchase but you cant denied the fact at $50 drop there will be someone out there that this drop will hit their target mark on the ps3.  you have to think a bigger picture not just a small group that think ps3 have very little value to them.

every price drop will always gauranteed an increase in demand either is a small increase or big increase, its still an increase value.  Like I say the better quoting for the title is will $50 drop have a significant impact to help them boost a disirable sales figure.

your dogs illustration fails, you should be cow's shit instead. or using the Gamecube or Xbox.  something that is 0 value to start with does not apply here.