I'm under the impression that there isn't a single consumer who hasn't purchased a 360 because of the cost of peripherals.
And you base this assumption on ... ? Cost of the perephrials is a MAJOR deterant for me.
If the cost of the peripherals aren't preventing people from purchasing the system, then lowering the price of the peripherals won't increase sales.
Not necessarily true.
Something may not be a deterant, but that doesn't mean you cannot make it a positive. e.g. If Sony comes out with $20 controllers and $50 games consumers can easily see, "I pay more for the PS3, but get some nice extras the Xbox doesn't have, and in the long run I save a lot of money on games and peripherals."
That would an example where
lower costing peripherals can generates interest and sales. Same goes for games, as we will see from Nintendo. A $50 game may not deter sales, $60 may slightly, but $40 across the board could spawn significant new sales. So just because $50 is not a deterant doesn't mean that lowering prices could not generates more sales.
As for the peripheral costs... $40 for a wired controller? $50 for a wireless controller? $150 for a FF wheel? What was it, $40 for a 64MB memory card? And an extra $10 on most games that most stink to high heaven, even when compared to their Xbox counterparts (looking at you Madden!)
When I got my GCN I paid $50 for Madden and $20 (each) for 3 additional controllers and a memory card for $10. That is $120.
If I were to do the same for the Xbox 360 that is $60 for Madden, $120 for controllers, and $40 for a memory card. Total: $220.
That is nearly a 100% markup on goods in addition to the more expensive console. Last time around you could get a top flight Xbox for $300 and now they want $400 for the same package (Console with HDD).
MS has increased the price entry
and the price of maintenance.
I can take a higher entry point cost if the product is high quality, but nailing me for $40 for a controller than costs MS less than $10 to get to store shelves is a joke. Especially when the majority of their early software is ports and rushed. It reminds me of the first year of the PS2 (which didn't impress me much at all). Toss in the software issues (of the 360's better games a large handful needed more dev time: CoD2, Oblivion, PGR3, Prey, Quake 4, etc) and the fact MS has strolled out a lame 90 day warranty on a $300+ product with extremely overpriced peripherals...
Lots of deterants from interested customers. Lets see if 65nm cleans up their hardware and if Sony can light a fire under their butt.