Exactly. People seem to like the fact that the PS3 is technologically advanced; this advancement is the exact reason the price is so high.

You can't have it both ways simultaneously, folks. Asking for a 199.99 PS3 is either asking for 1) Sony to go bankrupt or 2) the PS3 to be much more like the Wii than it is the 360. Since many of the most ardent PS3 fans seems to dislike the Wii's tech specs, I assume none of these solutions are palatable to you.

Next week: Corvette sells all their cars for 1,000 dollars a piece. Their market share would reach 90%+ in less than a month! What could possibly go wrong!

Agreed, the PS3 is a "steal" so to say in terms of technology right now for the provided technology considering pricing. Although there already are more powerful cell systems available (although lacking a game library).

Two reasons why I think it was the right choice to make the PS3 such high spec:

1) The move to high definition TVs. People will want to be able to take advantage of the better resolution and better audio equipment. This is an ongoing process, becoming an increasingly important factor as time moves on.

2) The emphasis on console gaming (nearly all PC games go multi-platform, nearly all exclusive games are exclusive to consoles). Commerical developers are nearly all focussing and styling their games specifically for consoles specifications, high end gaming PCs will only distinguish themselves by a few extras. Maybe only more resolution options, potentially higher framerates on well specced systems, etc. So better specced consoles will help to deliver us more impressive games in general.

The most highly priced consoles like the impressively specced 3DO or Neo Geo faced mass appeal difficulties, one problem was that around the time consoles were much more exclusively seen as strictly toys. And an expensive toy just usually sells less in volume, there aren't enough rich kids in the world.

Luckily the market has changed, especially Sony released many games not specifically targeted at kids or early teens for the PS2 (many mature rated games released by 3rd parties as well), changing the general viewpoint considerably over the years, gamers stuck with gaming as they turned older. Consoles have now become far more suitable for other general uses as multi-media devices as well (the extra thus, justify much better the consumer investment). Other reasons why the PS3 does this well is because of Sony's reputation of competence with regard to gaming and entertainment in general, they have a proven track record in multi-media (music and movies) as well as in gaming (Playstation 1, Playstation 2 and Playstation Portable).

Considering market developments and that the PS3 is to last at least a decade, IMO the high specs and thus higher launch price is well justified. It sets a standard for many years to come, every year in general more appealing due to more content like HD movies and better games, every year more appealing due to wider HDTV penetration and more people being able to afford the console due to cheaper entry pricing.

I think Nintendo would have failed with introducing an expensive high end console, Microsoft could easily do it but has limited general appeal due to its horrible business / support reputation and lack of expertise.

On the other hand, Fila, the Iphone has actually been losing market share, even with the price drops. I'm not sure comparisons to the Iphone are going to suit the purpose you had in mind here, because the iPhone indicates that marketshare doesn't increase much (or actually decreases?) with reductions in price. That's always been true with Video Games, too, of course (Neo Geo, CD-i, 3D0, and other highly expensive systems never exploded in sales after their prices dropped).

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=ACBJ&date=20080606&id=8742946

It is approximately -4% or so last I checked, Fila. That's why I said "approximately."

They weren't on the same pace as DVD.... and never were to my knowledge.

Basically HD-DVD died and people expected a surge... and their was... but there was no follow through.

Blu-ray sales went up.... then went down to actually lower weekly sell rates then when it was facing HD-DVD... and has since slowly been etching up.

This wasn't expected so a lot of companies put a lot of money epecting blu-ray adoption to be happening a lot quicker.

Stores of course want Blu-ray entrenced for HD over things like direct downloads because things like direct downloads bypass them.

Stores Pushing PS3's makes a lot of sense for this as well as 43% of PS3 owners apparently watch Blu-ray movies at least once a month according to NPD. (A remarkably high figure if you ask me.)

This Christmas will likely be vital to see if Blu-ray is the next DVD or Laser Disc.

Hahahahaha

Not only is that downright false, but the console versions will always be inferior.

I didn't know iphone was losing marketshare, but my point was that historically people won't pay more than $400 for an electronic device that they don't really need. There are exceptions of course like TV and PCs where people will reach deeper into their wallets.

That's it? I would've guessed it would be a lot worse.

I see, well you're probably right because I found the article I read and it said it was outpacing DVD in Europe.

 Game library sub par?

Compared to what ?

Not to the Wii in any case,and it is beating already the other console.

Look a bit in Gamerankings about PS3 and Wii software before coming saying such nonsenses.PS3 has nearly 3 times as many games rated 80% or higher.And even from those some of the Wii ones are old generation straight ports.

GTA4 ,MGS4 ,Gran Turismo 5 Prologue ,Uncharted ,Unreal III ,Call of Duty 4,Ratchet and Clank ,DMC4 ,Resistence ,Race Driver GRID,Colin Mc Rae DIRT ,Orange Box ,Assasins Creed ,Fifa 08,Everybodys Golf ,Eye of Judgement ,Folklore ,Civilization Revolution ,DragonballZ Burst Limit,Virtua Tennis 3,Virtua Fighter 5,Warhawk ,Singstar ,Burnout Paradise ,Tiger Woods ,Madden 08 ,NBA 2K 08 ,NHL 2008 ,GRAW2 ,Rainbow Six Vegas ,The Darkness,Ninja Gaiden Sigma ,Motorstorm,Condemned 2,Dark Sector,Fight Night Round 3.......

...if thats sub-par I hope you dont ever see whats on the shelves on the Wii.

Maybe he meant FPS? I mean... there are gaming expierences on PC you just can't get on PC.

I'm not sure you know the diffrence between above and below 80%

GTA4 ,MGS4 ,Gran Turismo 5 Prologue ,Uncharted ,Unreal III ,Call of Duty 4,Ratchet and Clank ,DMC4 ,Resistence ,Race Driver GRID,Colin Mc Rae DIRT ,Orange Box ,Assasins Creed ,Fifa 08,Everybodys Golf ,Eye of Judgement ,Folklore ,Civilization Revolution ,DragonballZ Burst Limit,Virtua Tennis 3,Virtua Fighter 5,Warhawk ,Singstar ,Burnout Paradise ,Tiger Woods ,Madden 08 ,NBA 2K 08 ,NHL 2008 ,GRAW2 ,Rainbow Six Vegas ,The Darkness,Ninja Gaiden Sigma ,Motorstorm,Condemned 2,Dark Sector,Fight Night Round 3

Civilization has one score so nothing to say yet.

Red are all below 80% except Ninja but thats a port and you said not to count them...

And then If I were to kill the multi then It comes down to 12 games for the PS3 which are Metal Gear Solid 4: Guns of the,Uncharted: Drake's Fortune  , Ratchet & Clank Future: Tools of Destruction, Resistance: Fall of Man,Warhawk ,PixelJunk Monsters, SingStar ,MotorStorm, echochrome, Hot Shots Golf: Out of Bounds,Heavenly Sword, Gran Turismo 5 Prologue

Sorry If I missed one...

And If I count up the wii it comes to: 11 since I won't count Geomortry wars...No I'm not copying pasting again to post them...

It's more that I don't like when people put false facts out then anything...

 Theres not anything more false that what you have just done to downplay the PS3.Not counting the multiplattform PS360 titles when you are comparing the PS3 and the Wii is the more stupid thing ever.PS3 has those games.Wii doesnt.Thats all ,the PS3 catalogue is right now like 2-3 times better that the Wii.

Plus you seem to confonund remakes (as Ninja Gaiden Sigma ) with ports ,as Okami ,Twilight Princess,Bully or RE4 ,along the best Wii games according to gamerankings and metacritic but straight ports of PS2 and Cube games.