You'd think we were in the midst of an economic downturn. Default rates on mortgages are soaring, and there is talk of a major bailout of people who are having trouble keeping up with their mortgages.

So how then, I ask, is it that people can apparently still afford to blow money on new televisions, video games, and all kinds of other consumer electronics knickknacks?

According to Sony (NYSE: SNE) CEO Howard Stringer, the shaky economy "has not affected electronics in the U.S ... Black Friday turned out to be very good for consumer electronics sales, and very good for PS3 (PlayStation 3) sales, PSP (PlayStation Portable) sales and beyond."

If people are struggling so much, why are they still spending so much money on PS3s and PSPs? Before we commit to a giant taxpayer funded bailout, shouldn't we look for signs that consumers are cutting corners themselves? Why are we bailing out people who are still spending on consumer electronics like drunken sailors on shore leave?

It's all very confusing. But for now it looks like, mortgages be damned, people still want to buy video games.

Cutting prices often stimulates demand. It seems to be working for the Sony (NYSE: SNE) PlayStation 3 -- at least for now. According to The Wall Street Journal, in Japan "unit sales of the PS3 exceeded those of Nintendo's Wii for the first time in the week ended Nov. 11." There is some evidence that the PS3 is doing better in the US, as well.

But the up-tick may not last. The Nintendo Wii is still a runaway success. There may be a shortage of the game consoles at Christmas because Nintendo cannot keep up with demand. But that problem will only last so long and the Wii will be back on shelves everywhere.

Microsoft (NASDAQ: MSFT) sill has a secret weapon for selling its Xbox 360. The astonishingly popular "Halo 3" game is driving sales of the 360 console, and that product appears to have "legs." Sony does not have a comparable game that is available exclusively for the PS3.

So, Sony may get lucky and the price cut on the PS3 may keep sales relatively high. Or it could just be a mirage brought on by bargain hunters.

Douglas A. McIntyre is an editor of 247wallst.com.