The launch price of the 20G PS3 for $499 was a steep price for a video game system and higher than the XBOX 360 and the Nintendo Wii. This price and the extremely limited quantities available at launch date led to the PS3 selling very poorly compared to both systems. This proved to be a disaster of a marketing move by Sony and would take the company years to catch up to its rivals.
If you think that the prices of the new games systems are high, check out the launch price of some other game systems:
Atari 2600 - $199
Atari 5200 - $269
Intellivision - $299
NES - $199
PS1 - $299
Sega Saturn - $399
3DO - $699
If $199 seems to be a reasonable price for a launch of the Atari 2600, then you have to realize that if you adjusted the price for inflation that price would now be $700. The 3DO launch today would be over $1000. The Atari 5200 would be over $750. That is a lot of money for a system with terrible controllers.
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