>>712377093 (OP)In any business, you lower the retail price of a product to encourage more sales. You'd be dumb, and probably fired, if you dropped prices but the additional amount of units sold doesn't make up for reduced profit per unit. You have to remember that by the date in that picture, it was clear the GameCube was going to lose that generation, and the Dreamcast was discontinued barely a year prior. The goal getting a lot more of the console into people's living rooms, even if it meant sharply cutting into their profit margin, meant more of an install base to convince 3rd-parties to release more games for the system (from which Nintendo collected licensing fees).