Originally posted by gaara
it will generally rise and become much more expensive than other newer products because it costs the company more to continue to produce older products
"or" the older product is no longer made and the retailers that still current have the older product now can jack up the prices when there is a high demand for a product that is no longer produced.
Pricing is all about SUPPLY and DEMAND.
9 times out of 10 the price increases are on the side of the retailers not the manufacturers. Manufacturers create, "MSRP" or manufacturers suggested retail price. This MSRP is designed to put an average price on a product to give an initial even playing field. Then as the market begings to evolve, retailers will tailor their prices according to the supply, demand, current state of the economy, wholesale costs and their competition.
A perfect example is the 7800GTX 512MB. A card that had a MSRP of $649.00. Which alone will make you choke on your milk. But, you must keep in mind that NVIDIA spends millions of dollars on research, development and manufacturing on these high-end cores. With that being said, "The first release of the 7800GTX 512MB, was very, very light... and most retailers were selling them at $699. After a few days, when the demand was high and the retailers now found they couldn't get more, the dmenad was at the ceiling and prices were from $749 to $899. Now that card can barely be found anywhere...