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Playstation Price Elasticity
By Chris | November 27, 2007
Video game players apparently have a very high price elasticity of demand for the Playstation 3. According to Bloomberg.com:
PlayStation 3 sales have quadrupled since the company cut the price to $499 from $599 and introduced a $399 model, Otzman said. Wii has been the top-selling console since its introduction a year ago.
Close substitutes are one of those factors that increase price elasticity. The Wii, is an attractive substitute. Even seniors are buying them! Unfortunately, I have not played either yet.
Topics: Economics | No Comments »