[crazygringo]

Consoles haven't been sold at a loss for a long time. They're not the Gillette model at all, though a lot of people still think they are.

So, no -- it is never better to reduce early sales. You want to sell as many units as possible, as many games as possible, as many accessories as possible, as soon as possible.

(Also, as the same console does becomes cheaper to manufacture over the years, the price tends to go down as well.)