By this logic, wouldn't everyone skip the 60 GB model and go right for the 80 GB? Public perception will be that if you want a REAL ps3, you buy the 80 GB model, since obviously its better. I mean, it has an 80 instead of a 60. When you have John Smith looking to buy a ps3, and all they see is 60 GB for $500 or 80 GB plus a game for $600, which are they going to choose? I'd lay money that they'll say the same thing they did before, which is spend the extra money and get the obviously better version.
No. Because the 60 gig was a better value than the 20 gig, while the 80 gig clearly is not.
Why didn't the 20 gig sell? I proposed an answer to that in another price drop thread, and I like it so much I'm going to stick with it. It didn't sell because the people who buy consoles in the first year are the "first five million who will pay anything" crowd Sony used to talk about. The ones who camp out on launch night, who pay absurd prices for systems with no games--they don't want a budget version of the machine. Now, with the first price drop and with the first avalanche of good titles on the horizon, the normal people are crawling out of the woodwork to buy. Some of
these people might be interested in a 20 gig version, if it still existed. But a lot of them are just slightly less hardcore consumers, still interested in the "full" PS3, but not willing to pay quite as much for it.
So in response to people saying the cost of entry hasn't changed...
At launch, the options were between the 20 gig with no wireless/card reader, and the 60 gig with them. For me, wireless support on my console is a must. The extra 40 gigs is strongly preferred. And the card reader is a nice bonus that might get some use a couple times a year. As far as I was concerned, therefore, the 20 gig version might as well not have existed.
I'm sure a lot of other people were in the same boat. For us, the cost of entry at launch was $599. Today it's $499. That is a de facto price drop.