Start with a quote:
Price drops have dominated Xbox 360 and PlayStation 3 headlines the last few weeks and it�s easy to see why. The barrier of entry this generation has risen considerably for the average consumer and early adopters want to see those walls torn down as quickly as possible. The incredible horsepower under the hood of the two HD behemoths are the main cause of these high price tags, and when you remember that both hardware manufacturers had to suffer hefty losses just to reach those prices, it�s staggering to consider the cost of that performance.
The rest of a good read. Thanks, Fesworks.