tag:blogger.com,1999:blog-20855139.post116535120901261617..comments2008-11-06T17:54:06.509-08:00Matt McClintockhttp://www.blogger.com/profile/10586300643759762180noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-20855139.post-1167500213227398162006-12-30T09:36:00.000-08:002006-12-30T09:36:00.000-08:00The definition of "profiting without bearing any risk" is not applicable here if you don't ignore the very real risks of standing in line for one of these units. First, standing in line, often for days and in the cold, has the very real cost of lost income or lost opportunity to use your time elsewhere. Risks while in line may include anything from arguments and fights in the line to being told to go home before the sale to catching a cold. However, the major risk is that when you go to buy the unit it will not be there - numbers available at each store was unconfirmed, thus many standing in line received NOTHING. <BR/><BR/>Like many things in economics, the definition and theory fits only if you ignore a huge number of facts, issues, and variables (all conveniently called "externalities"). If only science were so bold - ignore that which doesn't fit your model.<BR/><BR/>As for the questions, anyone even moderately following the PS3 launch would know the answers. First, Sony would have an even worse PR nightmare if it raised prices, and only a fool would think that launch demand would significantly decrease without major price hikes. In fact, it is hard to tell whether a higher initial launch price would just create even greater scalping prices. <BR/><BR/>As is widely reported, Sony makes the PS3 at a loss because over time it hopes to make money on associated products such as games (and associated deals) and it hopes that over the run of production the cost of production will come down.<BR/><BR/>As for the 3rd question, if you're dumb enough to ask the question because you: a) don't know the answer; or b) think it's interesting to discuss the weather or the reason why people don't want to stand in line for days; <BR/>you deserve to be kicked out of econ class and forced to live in the real world for a few minutes instead of asking silly, uninteresting quetions.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20855139.post-1165537020561555662006-12-07T16:17:00.000-08:002006-12-07T16:17:00.000-08:001. Hype = good<BR/>2. Profit from game licensing<BR/>3. It's cold out in much of the USAnonymousnoreply@blogger.com