Shifty Geezer said:
but as long as console cost £300+
You honestly think the same business model would exist if it weren't for competition? Machines would be less powerful and/or more money.
If only PS3 were coming out, and Sony charged £1000 for it, it wouldn't sell - not in any numbers anyway. At £500 it wouldn't sell. They'd have to drop the price to something people were willing to spend. Might be say £200, where it'd be £100-150 with competition, but prices would drop to what people were willing to spend. How can it be otherwise?
"We Sony. We makee gleat console. We selly console for thousand pounds. We only sell 50 console. We could sell 50 million if we sell console for £200, and we makey more money from licensees, but we sell for thousand pounds - it is velly good money for work of art that is PlayStation most beautiful."
I think not