Plus this:

“We’re seeing companies ignore their largest market simply because they can make a greater profit elsewhere.”

…may work from Nintendo, but it doesn’t really ring true for Sony, does it? Well, it does in the sense that they’re ignoring their largest market (Europe), but surely Europe should actually be their most profitable as well, ergo should be focussed on?

Sony has been much more dedicated to agressively selling the PS3 in the US and Japan (with great bundles, Dualshock 3 and the 80GB SKU) and Australia (with the Bravia+PS3 deal) where it obviously feels in danger of losing market share to its rivals, than actually doing a good job of selling where it’s strong (Europe).

That’s probably a feature of the console war with Microsoft, but it once again lends much more credit to Nintendo’s strategy of declaring the console race irrelevant and just going on to make a profitable and successful console and gaming business regardless of what its supposed competitors are up to.

So I’d say it’s an excess of demand and too little supply that is responsible.

It’s so true!