Price rules with the uninformed or unbiased consumer.
When I was young, I sure didn't really know or care about the difference between a collecovision and an atari. They both advertised, they both had great games. My parents bought me a 2600, and it was great. Would I have been upset if they had gone a different route? Nope.
Hmm.. how old was I at the time?, I was probably like 8-10 (don't remember if we got one the year it was released or not).
Are 13 year olds more biased than 10 year olds? Enough to have a sense of brand loyalty or really care about what they have compared to their friends?
I'm not so sure. Because even much later on, I remember we got a Genesis instead of whatever the latest Nintendo offering was (SNES?) to replace our aging Nintendo console and I was indifferent about getting one instead of the other. I didn't make that decision, my parents did. Presumably based upon price since they didn't play it. I was just happy to have a new game system that had better graphics and better games than the Nintendo I had been playing.
You have a point but times have changed. I was satisfied with my atari when people had a NES. I was also satisfied with my NES when everybody had a Genesis and SNES in my time but I dont think today kids feel the same way about consoles. Gaming industrty changed, grew and evolved and kids take their consoles more seriously.
Its surprising that kids today give more attention to what games they play, their console's graphics and other features. They dont just think "I want a console to play games for fun". They want a console to play game a, game b, game c, that has this thing, and does that etc etc.
Its crazy if you think about it.
Perhaps I may be wrong though since judging from handhelds more kids own a DS than a PSP but this could be due to the fact that they may not take that seriously handheld gaming. Handheld may be more like what gaming was in general in the 80s 90s
Also its the first time a console carrying such a popular brand name has such a big difference in price compared to its competitors and has so many advanced features that are unheard of on a gaming console and kids arent used to using them or may not care about them at all.
So perhaps parents may end up buying a 360 for their kids until PS3 gets cheap