Just in case you have not heard about the mobs and the shooting associated with PS3 going on sale read PS3 Debuts to Long Lines, Conn. Shooting
People wait in line a long time when these video games go on sale. In effect, the price is too low. So there is a shortage. The number of the PS3 video game consoles that people want to buy at the going price ($500) is much greater than the amount available. Riots and stampedes sometimes break out when things are given away for free. The only difference here is that a price is being paid, but it is still far below the intersection of supply and demand.
To stop people from waiting in line (and encouraging muggers to come by), a much higher price would reduce the quantity demanded. Other products sell every day for more than $500 a pop and there are no problems. The stores should start out selling them at $1,000 and reduce it by $50 or $100 a day to gradually bring them into the market. A few people will buy them the first day at the higher price. But you won't have the lines or the mobs. The stores could even publicize that they will give some of the excess profits to charity. As the price comes down, more people will buy them. But it will be fewer than the mobs we see on the first day now since a few customers will already have theirs and won't need to show up.
How do I know a few people will buy them at such a high price on the first day? The long lines now prove how much people want it. Some will be willing to pay more not to have to stand in line.