| Price of consoles has always been a major factor of moving them. Think about the PS2. The main reason it did so well to start was it was a really cheap DVD player and people could outright see a significant difference over VHS. The launch titles for the most part stunk. It wasn't till the price came significantly down did it move units as a game console. But the PS2 wasn't a $500 or more. I think it was $300, or $250 at launch.
And another issue with the new consoles is if you want to enjoy the consoles full capabilities, assume the game has been coded to use them, you have to have a HDTV, and, at least, 5.1 home theater system. And I don't think that many households have them yet. HDTVs, my guess is around 30%, maybe 40%. And with Sony and Microsoft pushing the online gaming thing, one needs to think of the cost of getting broadband internet service, and even with the cheapest DSL service of $15 or $20, you're looking at an addition cost of $180 to $240, and not including $50 to $80 for XBL.
I thought it was funny nonetheless. Video game will always be around in some form. Right now, we're seeing a more console-centric time. I remember when it was PC-centric. We may see a shift back to PCs at some point. But I can't see game makers ditching the big titles. Too much money to be made. I think Nintendo Wii shows a simple system can make money will simple and very fun games, and it doesn't have to be the latest greatest technology. The Wii is console that's prime for an Atari2600 history were cheap and quick games are sent to public.
I think it's safe to say the game industry will change over time. We've seen it happen. Does it mean we'll see another game console or less of them.
But for right now, I believe the reason neither the 360 or PS3 have a bigger installation base if purely price. I think for them to hit those big numbers like the PS2, the price needs to be near or below $200. As much as I hate to say, I think the market will bear the price of $60 per new game. | 
