Market Dynamics
The release of the PlayStation 3 (PS3) in 2007 had significant economic implications. Its advanced hardware and software capabilities drove up the console’s production costs, leading to a higher retail price than competitors. However, the PS3’s innovative features, such as the Blu-ray drive and motion-sensing controller, appealed to a premium market, resulting in strong initial sales. Yet, over time, the high price point hindered mass adoption, limiting the PS3’s long-term market share compared to its rivals.
