A number of your examples for deflation are a result of short term circumstances (Excess inventory of trucks and suv's driving down prices, excess lumber from lesss home starts driving down furniture prices). Just something to keep in mind.
As a PC enthusiast I can tell you flash/solid state drives have been a bit of a disappointment in both the price and performance categories. It will be a long time before WD becomes unprofitable, especially considering all the PC's out there that need their drives when their owners want to get more capacity for their digital media without opting for a new computer. WD is also the market leader for performance drives for the gamer/home enthusiest market segment with their Raptor drives and have a good brand going in this area
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This guy is spot on, especially about the comment on not developing for the Wii. You will notice most of the Wii titles that are successful are first part Nintendo titles. The Wii is being purchased in such large numbers for its low price, innovative controller & nintendo brand loyalty, not for its 3rd party game catalog. It has a lower attach rate (games purchased per system sold) than Xbox and PS3. The money is in MMO gaming for the PC and cross-platform Xbox/PS3 games. The trick is trying to find which developer can get gamers to switch from World of Warcraft to the next MMO. Digital downloads are also becoming popular for the PC. Valve has been successful at publishing PC titles through their Steam digital delivery and gaming platform.
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