"Even if such a price cut caused sales to double" Wait, you're doubting whether a price cut of 85% would even double sales? With a demand curve like that some

"Even if such a price cut caused sales to double" Wait, you're doubting whether a price cut of 85% would even double sales? With a demand curve like that someone will need to tell the game companies they are leaving billions on the table when they could be charging $150 a copy. I'm pretty sure we'd see sales explode on price alone but the limited console installed base is also depressing game sales. A large percentage of high end console users use them primarily for netflix and other non-gaming uses but they aren't marketed effectively for these uses. Apple isn't even marketing the ipad as a game machine but they move far more $300+ units than Sony and MS put together each month. "I don't think 'hardcore' gaming is that price sensitive" You're talking yourself into a conclusion here. Not only "hardcore" gamers enjoy playing Call of Duty. {And the notion of console fps players being hardcore itself is problematic}