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Heck, if the average person is struggling to have a simple meal at McDonalds, then there'd be no way they could afford a game console!
Next year when I'm at Uni I'll be struggling to afford my rent and food, let alone games and whole consoles. And with so many people in a similar situation (especially with rate rises and mortgages) alot of people wouldn't even consider gaming consoles as a possibility.
Overpriced implies it costs too much considering it's value, which isn't the case with the PS3 and 360 (both were originally sold at a loss, only after a while, have they started getting a profit per sale, if they indeed do)....The Wii, comparatively, while less expensive, produced a profit for Nintendo from day 1.
Semantics, you might say, but still, the point stands...
In any case, yes, the PS3 and 360 consoles (esp. the PS3) cost an arm and a leg at the start, but prices are coming down....Anyhow, the price of consoles goes up with inflation. There has been, I think, at least one console released that, with inflation taken into account, cost people roughly $1000 USD by current standards....