"Fabulous new mobile phone, lots of bells and whistles = people happily pay $500" Even the highly touted (and supposidly expensive) RAZR phone can be had with a commitment for around $50. Most phones are in that range (or cheaper) with 1 or 2 year plans. And the people who buy the more expensive ones are few and far in between, most people are perfectly happy with the one that comes free with the plan. "Fabulous new video iPod, lots of nice features = people giddily pay $500" According to Apple's store, the 30GB iPod video retails for $250, and the 80GB version for $350, a far cry from $500. "Fabulous new game console, nex-gen features = people freak out, say $500" Because game consoles that have succeeded have always cost in the $200-$300 range. And its not "just $500", it is "Starting at $500"