I thought I'd dig up a pretty well known chart showing console prices. The interesting thing about this chart, though, is that the figures are all US prices and corrected for inflation.
So I got the original and modified it by adding the nintendo Wii and removing the PS3 20gb version (as you can't buy that in the UK).
I also took the liberty of converting the current UK price into US $ (based on todays 1:2 currency rate) and adding this as red lines just to show how much we get ripped off in this country

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For instance, a North American can buy a Wii and a PS3 for the price we pay for just a PS3

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Quite apart from the "rip-off Britain" culture (which, imho is far too great to simply be explained away by taxes and duties) just by taking a look at the US prices for a level playing field shows some interesting trends too.
Firstly, the Atari 2600 (the first real "gem" to arrive) actually cost more than a PS3 in adjusted figures

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Secondly, after these early consoles, there was a video games crash which forced the price of hardware down massively. I mean, we went from circa $700 all the way down to the $300 mark in the eighties (no wonder the nes and master system were such hits - parents thought they were getting a bargain compared to the Intellivisions and Ataris that went before).
The problem for the manufacturers was that these two consoles really set the trend for "bang for the buck" that parents demanded from then on up to today. It was perfectly possible to spend $200-300 even and still get great gaming, so why fork out hundreds more?
In fact, the third most important trend is clearly that no console priced at an adjusted >$500 went on to be a success
since the 80's. None.
Look at the $500 mark and then look at the bars that are taller:
NeoGeo, CDi, 3DO, Saturn........
....how many of those were a great "success" then

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Everyone talks about the successes of their respective era's:
NES, SNES, PS1, PS2...........
all were priced at the magic sub $500 mark regardless of how many bells and whistles were attached.
The graph shows initial launch prices btw, price cuts later in the consoles life are not shown.
So what current consoles will have their prices slashed (if at all) and when do you think it will happen?
